Alliances

Microsoft and Yahoo Strike a Deal

Watch out, Google: Microsoft and Yahoo have sealed a deal on an alliance that could threaten Google's search supremacy. Although Microsoft launched talks with Yahoo by making an unsolicited takeover bid 18 months ago, the most recent offer will, the Financial Times writes, "combine the search technology and search advertising systems of the two companies and give them a better chance to catch up with Google." The deal will boost Yahoo's annual operating income by about $500 million and yield capital expenditure savings of $200 million, the companies said in a joint statement on Wednesday. The exclusive search for Yahoo's sites will be Microsoft's recent Bing engine, and Yahoo will sell search ads for both companies.