Yahoo! teams up with US newspapers

Yahoo! is linking up with several US newspaper groups to share online content and boost its presence in the potentially lucrative local online advertising market.

The deal will allow local newspaper websites to sell online advertising through Yahoo!'s ad platform. It will also see localised versions of the web firm's services, such as Yahoo! Maps and event listings, appear on newspaper sites.

Initial collaboration through Yahoo!'s Hotjobs recruitment service will allow local firms to advertise jobs through their local newspaper website using the system.

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Yahoo! chairman and CEO Terry Semel said in a statement: "We believe the local segment is largely untapped and provides significant opportunities to expand audience engagement and subsequently grow local advertising."

The deal fits in with the online advertising boom that has driven business for, among others, Yahoo!'s rival Google.

Other potential innovations that could come out of the deal may include search and content capabilities for local newspaper websites, Yahoo! said.

The consortium of seven newspaper groups consists of 176 local newspapers across 38 states. These include major dailies like The Dallas Morning News, The San Francisco Chronicle and The New Haven Register.