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Article

Title: Yahoo's Unlikely Amigos

Author: Fine, Jon Article Type: Company
Source: Business Week, n4019 p24(1) Publication Date: Jan 29, 2007
  ISSN: 0007-7135
URL of Publication: http://www.businessweek.com

Newspapers are facing decreased revenues and stock price declines that are attributed to consumers' growing use of online sources for news. In response to the challenging environment, a consortium of nine companies that represent over 215 daily newspapers in the United States has signed on with Yahoo! Inc. The consortium has made a deal to partner with Yahoo! HotJobs to create an online classified advertising venture. The consortium includes E.W. Scripps, Hearst Newspapers, and MediaNews Group. It has a 90-day exclusive negotiating period with Yahoo! that addressed five key areas to expand the partnership. Gannett, McClatchy, and Tribune, the three companies behind the online classified site careerbuilder.com are also discussing an alliance to develop an online advertising network. Both groups would welcome additional partners, but the Yahoo! partnership has been luckier in obtaining them to date. While some critics believe the newspapers are making deals with the enemy, the reality involves a more nuanced interpretation. Large online companies have a hard time customizing their products to local markets, and newspapers can give them an entry to these markets. The decreasing revenues for both Yahoo! and the newspaper companies has spurred innovation that has the potential to benefit both providers. Yahoo! recognizes that it cannot become 'local' without the help of newspapers.

Companies:
Yahoo! Inc

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