• by Gavin O'Malley  @mp_gavin, August 17, 2009

Setting its sights on local markets, Msnbc.com has acquired Chicago-based local online news provider EveryBlock. Terms of the deal were not disclosed.

EveryBlock, which will continue to operate as an independent brand, presently serves markets in New York, Los Angeles, San Francisco, Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, Detroit, Houston, Miami, Philadelphia, San Jose, Seattle and Washington.

Users can search and browse local news coverage, blog entries, civic data, photos and other information by neighborhood.

"They've broken new ground with their unique approach to collecting, organizing and presenting news down to the block level," Charlie Tillinghast, president of Msnbc.com, said on Msnbc.com. "Their impact and importance in the community space is extremely valuable and carries promise for journalism and new business models."

As local newspapers continue to suffer from stagnant advertising revenue, local information Web sites are popping up to take their place.

AOL, for example, recently acquired local media companies Patch Media and Going. Patch creates technologies and operates Web sites to help local communities publish news and information. Going, meanwhile, allows users -- the majority of which might be described as urban "hipsters" -- to share information about local events.

Still, the recession has hit the local online ad market particularly hard. Online spending by local U.S. advertisers -- which grew by 45% in 2008 to $12.7 billion -- is expected to see growth slow to 5.4% in 2009, according to media research firm Borrell Associates.

In late 2007, Msnbc.com previously acquired Newsvine, a social media news company.

EveryBlock was operating under a two-year grant from The Knight Foundation that expired in July.