Jennifer Stephens, Yahoo's VP of corporate communications, said the firm would eliminate multiple agencies and put one firm in charge of the consumer-facing PR for its network division.
"Instead of using smaller agencies that we've worked with - that we have been happy with, to a certain extent, in different areas - we're going for a more holistic approach and looking at some bigger agencies that might be able to fill that responsibility," she said.
PRWeek has learned that Golin-Harris, Ketchum, and Ogilvy Public Relations Worldwide are all pitching for the business. A decision is expected this month, Stephens added.
Stephens declined to cite the contract amount, but noted Yahoo's network division includes all of its consumer products, excluding its mobile applications. Yahoo's network division includes its search components, communications applications, community assets, media properties, and its homepage.
"We're going through a prioritization process internally on the business side," she said. "From there, we'll be able to figure out [our] focus from a PR perspective."
Yahoo will still work with OutCast Communications for its trade and business media outreach, Hill & Knowlton for its mobile applications, and Voce for some influencer outreach, noted Stephens, adding that the move won't affect Yahoo's in-house PR function.
The company recently embarked on improving its products amid criticism that it has not innovated at the same rate as rival Google.
Last week, Yahoo announced it would add a photo editor feature to Flickr. It also launched a pre-beta test of its messenger feature for Microsoft Vista.