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Saturday, December 05, 2009
Yahoo and Microsoft Finalize Search Agreement

Yahoo and Microsoft today announced that the companies have finalized and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement in accordance with the letter agreement announced in July.

The companies released the following joint statement:

"Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation.

"Yahoo and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010."

The plan to ink a 10-year Web search and advertising pact was unveiled in July and promises to set the stage for a Yahoo!-Microsoft offensive against Google, the king of the lucrative search and advertising market.

Under the no-cash deal, Yahoo will use Microsoft's new Bing search engine on its own sites while Yahoo will provide the exclusive global sales force for premium search advertisers.

Microsoft's tie-up with Yahoo gives the companies a larger share of the Web search market but analysts are divided on how much it will actually deliver in making inroads against powerhouse Google.

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