Microsoft and Yahoo! have announced a ten-year revenue-share search pact. Microsoft's Bing will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies' search advertisers.
Microsoft announced that the agreement will provide it's search engine (Bing) with the scale necessary to attract more advertising revenue and increase the visibility of the brand. This will enable it to compete more effectively with Google in an attempt to come out from a defensive strategy to a more aggressive competing strategy.
Microsoft will acquire an exclusive ten-year license to Yahoo!'s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms.