Yahoo+newspapers deal reportedly looking much better than expected
Editor & Publisher offered up surprising news Wednesday about the deals some newspapers have made to partner with the Yahoo empire.
Jennifer Saba reported:
Deutsche Bank analyst Paul Ginocchio and his team, David T. Clark and Matt Chesler, estimate the Yahoo consortium could push newspapers into positive revenue territory a year earlier than originally forecasted.
“We believe the benefits from the Yahoo deal could move the revenue and EBITDA inflection points forward, positively surprising the market,” wrote analysts.
The upswing could come as early as 2009, according to the research report.
Even more amazing, the newspapers involved in the deal could see a lift in year-over-year online revenue growth by 20 points by the second half of 2008, from 20% to 40%.
The big example cited is that of Lee Enterprises.
Since Lee fully launched its co-branded HotJobs recruitment sites in February 2007, online revenue soared 62% on average through July compared with an average of 49% from June 2006 through February 2007.
Is this the future? Essentially, outsourcing our online advertising through one of the existing internet brands?
Possibly. Stay tuned.
Read Saba’s story in E&P.
Read a 2006 press release about the Lee + Yahoo partnership.