• The Wall Street Journal, Friday, April 13, 2007 11:02 AM

Newspaper giant McClatchy Co. is in the process of abandoning its online advertising partnership with rivals Tribune Co. and Gannett Co. to join an ad network that will be managed by Yahoo, Inc. The network partners include Hearst Corp. and fellow newspaper rival Medianews Group Inc. Last fall, the group signed an agreement with the Yahoo's Hotjobs employment service to provide classifieds ads, but sources say the partners are on course to strike a much broader deal.

One of the requirements would be for the newspaper companies to use Yahoo Search on their sites. Yahoo and the newspapers would then jointly sell ads that would appear across the network. Newspaper content would also be featured in Yahoo categories, such as Yahoo News and Technology. No mention was made of the revenue split.

For McClatchy, the lure of Yahoo's ad delivery platform persuaded the company to abandon its nascent partnership with struggling newspaper giants Tribune and Gannett. For Yahoo, the deal marks its second partnership win this week, a potential boon for the company's search and marketing-services departments.

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