Facebook Inc. is offering news outlets millions of dollars for the rights to put their content in a news section that the company hopes to launch later this year, according to people familiar with the matter.
The Wall Street Journal is reporting representatives from Facebook have told news executives they would be willing to pay as much as $3 million a year to license headlines and previews of articles from news outlets, the people said.
The outlets pitched by Facebook on its news tab include Walt Disney Co.’s ABC News, Wall Street Journal parent Dow Jones, The Washington Post and Bloomberg, the people said.
Facebook’s plans come as the company is facing growing criticism for its role in the news industry’s struggles by sucking up much of the advertising revenue that used to go to newspapers. Combined, Facebook and Alphabet Inc.’s Google earned 60% of all digital advertising revenue in the U.S. last year, according to eMarketer.
The news-licensing deals between Facebook and news outlets would run for three years, some of the people said. Facebook is planning to launch the section sometime in the fall, the people said. It isn’t known whether any news outlets have formally agreed yet to license their content to Facebook.
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