THEY are already at war over who has the bigger online search facility. Now Google and Yahoo!, two of the internet’s most important pioneers, are to do battle over a deal that would see them embracing the world of “old” media for the first time.

The two US-listed companies, which between them had a market value of more than $126 billion (£70.2 billion) at close on Friday, are understood to have each approached Trader Classified Media, the Euronext-listed owner of 575 print titles, ranging from Canada’s Auto Trader magazine to Buy & Sell Chinese in the US, about a possible corporate tie-up.

Sources familiar with the discussions say that other firms, possibly including Ebay, the online auctioneer, have also made approaches. The talks include the possibility of a sale of a stake in Trader, an acquisition of the entire company or a joint venture. On Friday, Trader was valued at about €1.3 billion when adding both classes of the company’s stock together.

The interest by Google and Yahoo! underlines the continuing landgrab in the global classified advertising market and the desire of internet firms to create online communities in local markets throughout the world.

A public row broke out last week between Google, the world’s largest online search company, and Yahoo! over which boasts the greater search capability.

The spat came on the first anniversary of Google’s status as a public company, a birthday it marked by announcing plans to raise $4 billion via a secondary share issue. The move fuelled speculation that the company was building a war chest for non-organic expansion.

“Google is always on the lookout for interesting opportunities that complement our business and mission,” said a spokeswoman for the firm, but without commenting specifically on Trader. Yahoo! declined to comment.

Trader is controlled by its founder, John H McCall MacBain, who established the company in 1987 with three newspaper titles in Canada. The firm’s operations are divided into units that include auctions, property, automotive, recruitment and technology.

The group now operates in 20 countries and is actively pursuing opportunities in high-growth markets such as China.

Trader invested $193m last month in Sou Fun Holdings, a Beijing-based online property listings business. And the firm’s expansion there would be seen as complementary to Google and Yahoo!, both of which have recently engaged in corporate activity in that country.

MacBain, who is being advised by Long Acre Partners, the London corporate-finance firm, may appoint an investment bank to assist with a formal sale process.

News Corporation, parent company of The Sunday Times, is reported to have been interested in buying Trader in recent months, but decided that the deal was too expensive.