Yahoo! and Microsoft announced today that they have finalized their search deal that will replace the existing Yahoo! search engine, and implement Microsoft's Bing search engine. The press release by Yahoo! and Microsoft confirmed that the deal made in July of this year is now final.
The deal entails that Microsoft will acquire an exclusive license over Yahoo!'s core search technologies. The deal set out will last for ten years and will replace Yahoo!'s search. Microsoft will have the ability to incorporate Yahoo!'s current technologies into Bing.
The deal will come into full effect within the next three to six months, effectively increasing Bing's market share.
The companies released a 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 deal for Microsoft to acquire Yahoo! has taken more than two years, including rumors of Microsoft purchasing the entire company. The talks eventually came to a search deal that would take Yahoo! off the market to help Microsoft compete against Google's dominate hold on the market.