DOW JONES NEWSWIRES 
 

Yahoo Inc. (YHOO) and Zillow.com agreed to partner on an Internet real-estate advertising network, expanding the relationship between the operators of the second and third most-trafficked home-sale websites.

Financial terms weren't disclosed regarding the partnership, which will integrate Zillow's for-sale listings into the Yahoo Real Estate website set to go into effect later this year. Zillow and Yahoo, however, plan to immediately begin coordinating ad sales efforts.

Yahoo is in the midst of an effort to turn around the Internet giant that has been eclipsed by Google Inc. (GOOG) and left battered by Microsoft Corp.'s (MSFT) failed takeover attempt. Yahoo and Microsoft are themselves involved in an Internet-search partnership.

Zillow Chief Operating Officer Spencer Rascoff said his company's deal with Yahoo "creates the opportunity for agents and brokers to reach one of the largest audiences of homebuyers online when they list a home or purchase an ad."

The companies' relationship began in 2006, when Yahoo Real Estate incorporated Zillow's home-valuation estimates into its site. Zillow's website is among one of the most-visited U.S. real-estate sites, tallying more than 10 million unique visitors a month.

Yahoo shares closed Thursday at $14.60 and were inactive premarket. The stock is down 13% this year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com