The Cable News Network[1] and Internet Broadcasting[2] have an alliance that will provide CNN.com a way to provide a larger amount of local news.  This would give CNN a chance to snag more local advertisements.  Internet Broadcasting is based in Minneapolis, MN and will now be partially owned by CNN.

This CNN-Internet Broadcasting deal is bad news for newspaper websites such as Detroit Free Press’ Freep.com[3] and The Chicago Tribune’s local news section[4]. 

“CNN’s global reporting attracts millions of online consumers to CNN.com for domestic and international news every day,” stated Jim Walton, President of CNN. “Partnering with Internet Broadcasting adds another dimension - enhanced coverage of local news and events - and brings CNN reporting to significantly more people online.”

Over the course of the summer, CNN.com will also be unveiling a new web site design that emphasizes free archive video content.  CNN will shift its focus to an advertising-model over its current subscription-based model.  The amount of dollars that are being spent on the acquisition of Internet advertising companies emphasize the need for news companies to adapt to advertising-centric models.

The largest acquisition this year for an Internet advertising company was made by Microsoft, who acquired aQuantive for $6 billion.  Google acquired DoubleClick for $3.1 billion.  What we may see is a race to see who can outbid advertising deals for companies looking for advertising sources such as CNN.com.

[1] www.cnn.com
[2] www.ibsys.com
[3] www.freep.com
[4] www.chicagotribune.com/news/custom/newsroom/