Yahoo! and Microsoft Partner on Search Engine

It was announced today that Yahoo! will team up with Microsoft's Bing to form a search engine dream team of sorts, and while Google may not yet be quivering in its steel-toed boots, the partnership is still literally a big deal. Big, as in the 10-year planned partnership is expected to boost Yahoo!'s annual profits by $500 million.

What does this collaboration entail, apart from inching the two companies closer to a legitimate threat to Google? The New York Times writes that when the deal closes at the end of this year it will give Microsoft the job of providing the underlying search technology for Yahoo!, and the advertising work will be split. Microsoft will also license some of Yahoo!'s search technologies.

But their teamwork will certainly pay off at least in terms of logistics, as it's estimated that the two will gain 28 percent of search-engine traffic. Google will still maintain about two-thirds of the market.

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