According to latest reports, Yahoo! Inc. and Microsoft have reached the much awaited internet search deal. The search deal has been deemed for a 10 year period, that would unite two of the biggest online names against their common threat, Google Inc. However, there has been no official word from either Yahoo! or Microsoft.

According to the stipulations, Yahoo! Inc. will lease out its own search technology for Microsoft to use, if the latter wishes to do so and will permit Microsoft’s Bing Search Engine to provide search services on Yahoo’s websites. Microsoft’s search advertising technology will be used by Yahoo! to maintain sales related to search advertisements for both the companies.

As far as the financial aspects of the deal are concerned, Microsoft has agreed to pay Yahoo! 88% of all search advertisement generated revenues for the first five years of the agreement. This deal is sort of a morale boost for Microsoft, who had to drop a $47.5 billion bid to take over Yahoo! last year. However, the deal will affect user experience in any ways, as only the search technology will be changed and websites will remain the same of both the companies. Experts from both companies have stated that this deal will be highly beneficial for the online advertisers due to the fact that, these advertisers will be able to reach out to more users. On the other hand, Microsoft will be able to refine its search technology by studying Yahoo’s.

Danny Sullivan (Search Engine Land) speaking on the implications of this deal on Google said,

“They should be worried. It’s going to give Microsoft in one fell swoop a much bigger share of the search market.”

According to Bryan Wiener (CEO, 360i),

“The only thing that can increase that is product development and smart marketing and there is nothing in this deal per se that changes that landscape as long as they focus on their customers, they are going to be fine.”

Mr.Wiener believes that, Microsoft’s Bing will gain a lot of popularity in the eyes pf the advertisers due to this deal, as the advertisers so far been keeping their distance from this search engine due to the low traffic that comes with it.

Via Wall Street Journal.