Topix: World domination, deal 2

Topix.net announced a new deal with Citysearch–they will provide local news stories and Citysearch will give them ad revenue (basically). This is the second major deal announced since the one with Ask Jeeves in September.
ClickZ quotes Taek Kwon, Citysearch EVP of product and technology: “In tandem with extending the reach of our network of local advertisers through Topix.net’s localized news pages, we see this as a great milestone in championing local content on the Internet.”
It’s great to see Topix cutting more deals, but this agreement underscores what’s wrong with the online newspaper business–as in why didn’t one of the newspaper companies cut this deal first?
Sometimes I feel online news is like an old dog–you kick it, but it doesn’t move. Other times, I feel like people are trying really hard to move the online news business along–they’re just not always hitting the best targets.