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Gannett Co., (GCI) is down sharply near mid-day, down 7.75% but off its low of .43, despite announcing that it is partnering with Yahoo Inc. (YHOO) to sell local online advertising. The stock dropped 48 cents at the bell to open at .63 and slide to a low of .43 in step with the broader market. But shares have added back 56 cents to trade at .98. Gannett said that all of its newspapers and seven of its 23 TV stations will help sell Yahoo ad inventory in their local markets. Gannett and Yahoo will share the revenue, though specific financial terms were not disclosed, according to the AP. Yahoo is off 40 cents, or 2.6% at .97.

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