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Microsoft and Yahoo Ink a Deal

Microsoft Corp and Yahoo Inc have finally agreed to a partnership, a move both companies have been working on for months. Last year, Microsoft tried to buy Yahoo, but the smaller conglomerate didn’t think their 47.5 billion dollar offer was sufficient and chose to focus on a search advertising deal with Google, which also fell apart.

Set to be announced in the next 24 hours, the online search and advertising partnership was agreed upon as an attempt to rival Google Inc, and it will not involve Microsoft paying an upfront fee to Yahoo. The focus of the deal will instead be on sharing revenue between the two companies. Changes will include Microsoft’s new Bing search engine powering Yahoo’s searches, while Yahoo will handle the advertising sales using Microsoft technology. Courtesy of yahoo.com

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