Global - Yahoo and Microsoft have struck an agreement on a long-waited web deal that will see the two companies unite against market leader Google.
Under the 10-year exclusively agreement, Yahoo will use Microsoft's new search portal Bing to power its own sites. Yahoo will act as the exclusive global sales force for the companies' premium search advertisers.
Full implementation of the deal is expected to occur within 24 months following regulatory approval. Yahoo estimates that this agreement will provide annual operating income of approximately US$500 million and capital expenditure savings of approximately US$200 million.
Yahoo also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million.
“This agreement comes with boatloads of value for Yahoo!, our users, and the industry," Yahoo chief executive officer Carol Bartz (pictured), said in a statement.
"And I believe it establishes the foundation for a new era of internet innovation and development.”
