YP Corp., operator of directory site YP.com, has acquired classifieds destination site LiveDeal in a stock transaction worth roughly $12 million. The two sites will, in the near term, maintain separate destinations but trade and combine content. Over time, the destinations will likely tighten or merge.

Classifieds is the third largest Internet ad category, capturing 18 percent of online ad spending according to the IAB, behind only display and search. Traditional U.S. directory and classifieds ad revenues were worth more than $30 billion in 2006.

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About The Author: Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling. See more articles by Greg Sterling