The New York Times reports that Yahoo has struck a deal with 176 newspapers, consisting of a 7 newspaper chains to "share content, advertising and technology." The first part of the deal will promote Yahoo's HotJobs site, where newspapers will post the local jobs to HotJobs and use HotJobs's technology on their local newspaper site for classifieds listings. Then Yahoo wants to make these newspapers content more accessible within Yahoo's search index, local news and other search services.
Greg Sterling has more information at his blog.
Postscript From Danny: As a reminder, Google cut a deal for its Google News Archive with many news organizations in September. The Yahoo deal looks far more extensive in terms of integration with Yahoo.