Microsoft and Yahoo! confirm 10-year search deal

Yahoo! and Microsoft have finalised a 10-year search deal that will see Microsoft’s Bing power Yahoo!’s search engine.

The landmark deal will also see Yahoo! become the exclusive global sales agent for both firms’ premium search advertisers, according to reports.

However, the two companies will continue to operate their own display advertising businesses.

In a joint statement, the internet companies said: “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.”

The companies have joined forces in a bid to rival Google, which currently has a hold of more than 80% of all UK search spend.

Microsoft and Yahoo! have been in talks about a potential tie-up for quite some time.  In February 2008, Microsoft offered to buy Yahoo! for $44.6 billion.

Its takeover bid was rejected but the two companies entered into talks about a potential partnership, which was later confirmed.

In July 2009, the companies agreed the terms of the deal.  At the time, Carol Bartz, Yahoo! CEO, said: “This agreement comes with boatloads of value for Yahoo!, our users, and the industry, and I believe it establishes the foundation for a new era of internet innovation and development.”