Reports: Yahoo to expand newspaper deal, McClatchy to join

Yahoo is expected to announce next week that it is expanding its partnership with a group of newspaper publishers to provide a one-stop Internet shop for advertisers to buy ad space on the Web sites of the 250 or so newspapers, according to reports in the Los Angeles Times and The Wall Street Journal (subscription required). The newspaper sites would be required to use Yahoo search and content from the newspapers would be featured on Yahoo's portal, The Wall Street Journal reported Friday.

In addition, newspaper publisher McClatchy is expected to join the group, abandoning a plan to partner with the Tribune and Gannett publishing companies on ad selling, say the reports, citing unnamed sources.

A McClatchy spokesman said the company had nothing to announce at this time. Yahoo representatives did not immediately return phone calls and e-mails seeking comment.

Yahoo's initial partnership with the publishers, announced in November, was limited to selling job listings through Yahoo's classified job site, HotJobs. Other news companies in the consortium include Hearst Communications, MediaNews Group and Cox Newspapers.

Newspapers are looking for ways to stem losses from slowing ad sales and falling circulation rates. Yahoo is looking to boost customers of its recently launched Panama online ad auction system and narrow the search and advertising gap with Google.

Last month, Yahoo said it would feature on its sites news and blogs from foreign correspondents at McClatchy-owned newspapers.

Earlier this week, Yahoo and Viacom announced a multiyear deal in which Yahoo will be the exclusive provider of sponsored search and contextual ads to Viacom's 33 entertainment sites, including MTV and Comedy Central.