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Yahoo's search engine leans on Yelp for help, hoping merchants hold key

SAN FRANCISCO--Yahoo is cribbing from Yelp's online reviews of local merchants to soup up its search engine.

Ratings and excerpts from Yelp's merchant reviews began to appear in Yahoo's search results on Wednesday.

Financial terms of the partnership weren't disclosed. News of the deal first leaked out last month, so it didn't come as a surprise. Yahoo's stock dipped 7 cents to US$37.49 in afternoon trading while Yelp's shares gained US$2.48, or nearly 3 percent, to US$92.48.

Yahoo Inc. is hoping the snippets from Yelp Inc.'s popular service will spur more people to rely on its search engine when they're looking for information about a specific city. Yelp could generate more revenue and polish its brand by having its content featured in Yahoo's search results.

Boosting search traffic is a high priority for Yahoo CEO Marissa Mayer because the queries spawn insights into users' interests. That knowledge can then be used to sell advertising.

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