As he sees it, the $100-million-plus purchase last month of Associated Content and its 380,000 creators is another step toward the development of local news operations that --- coupled with Yahoo's sophisticated ad network and rich user database --- pose a real challenge to the newspaper.
"Assuming the fare produced by Associated Content is sufficiently respectable to attract and retain substantial audiences, then Yahoo’s ability to deliver targeted ads – combined with its overwhelming market presence on the web – will give it significant advantages against the incumbent newspapers operating in most markets," Mutter writes.
It will be important, then, for newspapers to be part of Yahoo's advertising network, Mutter surmises.