Microsoft and Yahoo! announce partnership

Microsoft and Yahoo have agreed an internet search engine and advertising partnership, in an attempt to challenge the market leader Google.

Under the ten year deal, Yahoo’s sites would use Microsoft’s new search engine Bing exclusively and Yahoo will be responsible for selling ads that appear on search pages for both companies. Microsoft has previously tried to buy Yahoo but the takeover was rejected by Yahoo’s founder Jerry Yang in a move which angered investors and led to his leaving the company. This deal would combine the second and third largest players in the US internet search market and position them to better compete with Google. The companies said they expect the agreement to go ahead after being “closely reviewed” by competition regulators.

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