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Yahoo!, Telemundo in Web Tie-Up

The deal recognizes the growing attractiveness of the Hispanic market.

Yahoo!

(YHOO)

and NBC Universal's Telemundo network are merging their Spanish language Web sites, the latest sign of advertisers' growing interest in the Hispanic audience.

Under an agreement between the two companies, Yahoo's

TST Recommends

Yahoo! en Espanol site and

Telemundo.com will share staff and advertising revenue.

General Electric

(GE) - Get Report

owns NBC. Details of the agreement were reported earlier by

The Wall Street Journal

.

Teaming up with Telemundo will help Yahoo! strengthen its foothold in the fast-growing and lucrative Hispanic market. Advertisers spent more than $3.3 billion last year to reach those viewers, according to Hispanicbusiness.com. TNS Media Intelligence estimates that advertising spending on Hispanic network television will rise 10.4% this year, the most of any type of media.

"By combining the services Yahoo! is known and loved for with Telemundo's content, we will provide the most comprehensive experience for U.S. Hispanic consumers and extend both companies' strong position in U.S. Hispanic media," says Greg Coleman, executive vice president for Yahoo! global sales, in a statement. "Additionally, Yahoo! Telemundo will provide an unbeatable platform for advertisers to reach the largest and most engaged U.S. Hispanic community online, on-air and on the go."

Yahoo! is continuing to add exclusive content to the most visited Web site as competition for users intensifies from

Google

(GOOG) - Get Report

and

Microsoft's

(MSFT) - Get Report

MSN service. Yahoo! also is looking to improve its position in the search market, where Google's continues to strengthen its lead. Details of Yahoo!'s plans will be discussed at its analysts meeting next week.

Google is trying to lure brand advertisers away from Yahoo! with new features such as a business news portal. Microsoft is betting that its recently unveiled adCenter platform will help it grab more online ad dollars.

The partnership also may help boost the performance of NBC Universal, the only GE business to show a decline in profit in the first quarter. Though Telemundo's ratings have improved lately, the network continues to lag in popularity with viewers to

Univision

(UVN)

, the

Journal

says.

Shares of Yahoo! rose 6 cents to $32.55. General Electric fell 4 cents to $34.96.