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Microsoft and Yahoo! finally finalize search pact

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Microsoft and Yahoo! have finalized the web search pact they announced to the world in July, a deal that would see Redmond's technology drive Yahoo!'s search engine.

In announcing the deal, the two web giants had said that some details still needed to be worked out. Originally, they expected to finalize the deal in late October. But then they extended "the period to negotiate and execute" in a filing with the SEC.

And now the deal is done - though it still needs regulatory approval. The two companies have said all along they expect complete closure early next year.

The companies released a joint statement announcing the finalized deal just minutes ago. "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," it reads.

"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." ®

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