Wednesday, 29 July (BBC) Microsoft and Yahoo have held lengthy talks on a tie-up Yahoo and Microsoft have announced a long-rumoured internet search deal that will help the two companies take on chief rival Google.
Microsoft's Bing search engine will power the Yahoo website and Yahoo will in turn become the advertising sales team for Microsoft's online offering.
Yahoo has been struggling to make profits in recent years.
But last year it rebuffed several takeover bids from Microsoft in an attempt to go it alone.
Microsoft boss Steve Ballmer said the 10-year deal would provide Microsoft's Bing search engine with the necessary scale to compete.
I believe it establishes the foundation for a new era of internet innovation and development
Carol Bartz, Yahoo chief executive "Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," said Mr Ballmer.
In return for ceding control of its search engine, Yahoo will get to keep 88% of the revenue from all search ad sales on its site for the first five years of the deal, and have the right to sell adverts on some Microsoft sites.
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