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Microsoft, Yahoo closing in a Web Search deal

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The two major search engines will soon join their hands to take on the mighty Google. The Associated Press liaised with one of its sources who claim that Microsoft and Yahoo have formed an alliance and the formal announcement is expected later today.

According to him, the deal will not have Microsoft to pay heftily but will be based on revenue sharing basis, where Yahoo will sell ads and use Microsoft’s technology and Bing search to display them. Though not confirmed, Yahoo may also “Powered by Bing” message on Yahoo’s high trafficked webpages.

If the deal goes through, Microsoft and Yahoo will cumulatively gain roughly 30 percent of market share as compared to Google who holds around 65 percent.

[Via AP]

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