Search functions, sharing news increased

Yahoo is greatly expanding its relationship with the newspaper industry, announcing the addition Monday of four new publishing companies to a consortium that works with the Internet company to sell advertising online.

Yahoo is also broadening the scope of the venture beyond its initial phase of selling help-wanted ads. It will now integrate Yahoo’s search technology across the sites of the more than 264 newspapers now in the group, which covers 44 states.

Yahoo and the publishers also agreed to share local news stories from the newspapers across Yahoo’s large news network and to sell local advertising online and to use Yahoo’s graphical advertising technology on newspaper sites.

The original partnership, which was announced in November, was focused on selling job-search advertising online and in print, combining the large sales forces of local newspapers with the national reach of Yahoo’s HotJobs online job-search service. Specific financial terms weren’t disclosed.

Since that time, five other newspaper publishers have also joined: McClatchy Co., the third-largest newspaper company in the country by circulation; Calkins Media; Media General Inc.; Morris Communications Company; and Paddock Publications.

In late March, McClatchy announced a separate deal with Yahoo to allow news stories and certain online-only material produced by four of McClatchy’s eight foreign bureaus to appear on Yahoo. The companies said they would share revenues but did not provide further financial details.

Yahoo regularly displays news from a number of outlets including the Associated Press, Reuters Group PLC and Agence-France Presse.

The growing consortium of newspapers working together with Yahoo on advertising widens a division in the industry between those papers and Gannett and Tribune, the No. 1 and No. 2 publishers by circulation. Tribune and Gannett have been working to form a separate national network for selling advertising online.

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