Microsoft, Yahoo agree on search partnership - Spokane, North Idaho News & Weather KHQ.com

Microsoft, Yahoo agree on search partnership

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SAN FRANCISCO, Calif. - A partnership announced today between Microsoft and Yahoo allows the two rivals to team up for an all-out assault against the dominance of Google.

The 10-year deal gives Microsoft access to the Internet's second-largest search engine audience.

It will allow Microsoft to introduce its recently upgraded search engine, called Bing, to more people and give it a better chance to convert Web surfers who had been using Google by habit.

Yahoo will get to keep 88 percent of the revenue from all search ad sales on its site for the first five years of the deal. It will also have the right to sell ads on some Microsoft sites.

Yahoo says some of its engineers will lose their jobs as the company scales back.

The deal isn't expected to close until early next year, and then it could take another two years before all the pieces are in place.

It must also be approved by antitrust regulators.

Microsoft and Yahoo began talking about a possible alliance as far back as 2005.

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