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Alan Mutter throws cold water on the Yahoo newspaper partnership announced last year. The deal had been the subject of a recent glowing report by Deutsche Bank, which forecast that the deal could lead to actual increases in newspaper revenues as soon as 2009.
Hogwash, Mutter says, quoting sources inside the coalition. A restaurant that serves lunch and dinner can get a big initial boost in business by adding breakfast, but that surge won’t be duplicated the next year. “We aren’t anywhere near matching the initial gains,†says one insider quoted in the story.
It doesn’t help that the focus of the deal is recruitment advertising, which is being hit by a slowdown right now.
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