Microsoft and Yahoo! finally closed their web deal which will make Microsoft’s Bing the algorithm to power the Yahoo! search engine. The long rumor is now over and the deal is set for 10 years. This positions both companies to target the search king Google. Yahoo! last year was on a brink of being bought by Microsoft but with this new deal no takeover is happening. Yahoo is next to ranking on search from Google, by Microsoft tying a deal with Yahoo it brings them much closer to Google.
Yahoo will keep 88% of the ad revenues for the first 5 years and have rights to sell ads as well on some Microsoft sites and brands.