Yahoo, Microsoft Partnership Deal Inked

Microsoft Corp and Yahoo Inc inked a 10-year Web search deal to better compete against market leader Google Inc. The deal, announced on Wednesday, may have a better shot at success than the proposed pact last year between Yahoo Inc and Google Inc.

The long-expected deal effectively means Microsoft's new Bing search engine will be combined with Yahoo's experience attracting advertisers to pose the first serious threat to Google, if the companies get regulatory approval and can make the partnership work.

Under the agreement, Yahoo will use Microsoft's search engine, Bing, on its Web portal, significantly expanding Bing's reach. In return, Yahoo will keep 88 percent of the revenue from search ads for the first half of the 10-year deal.