Microhoo deal finalised

Microsoft and Yahoo! have finalised the terms of its search and advertising agreement, four months after the deal was announced.

The two search giants will partner with the intent to compete more with Google, which dominates the search engine marketplace. They had previously hoped to finalise the deal in late October but needed more time to work out the details. Bing will take the place of the current Yahoo! search engine.

The companies are hoping to close the deal in early 2010 and say ” they welcome the broad support the deal has gotten from key players in the advertising industry.”

In October, four ad executives and the president of the American Association of Advertising Agencies sent a letter to the US Department of Justice in support of the agreement. The US government is still reviewing the deal for possible antitrust concerns.

The agreement was nearly a year-and-a-half in the making before being completed in June, during which time Yahoo! rejected acquisition offers from Microsoft. The stated goal of the arrangement is “to offer stronger search competition to Google, which has about 70% market share.” Combined, Microsoft and Yahoo make up most of the rest.

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