Microsoft and Yahoo appear set to join forces to take on common rival Google.
The Wall Street Journal reported yesterday that Microsoft and Yahoo are hours away from announcing a search and online advertising deal.
According to Kara Swisher, a blogger for The Wall Street Journal, negotiations have been successfully wrapped up on a deal that is expected to have Microsoft's search technology used on Yahoo sites.
This new Microsoft-Yahoo partnership could give the two companies some much-needed leverage in their ongoing - and until now, separate - battles to chip away at Google's stranglehold on the search market.
With Carol Bartz still new at the helm of Yahoo and focused on making the once-online-pioneer hip and fresh again, and Microsoft's Bing search service only a few months old, neither company has been able to make a noticeable dent in Google's well-polished, and well-funded, armor.
So a strategy that has them pooling their resources and industry might makes a lot of sense, says Dan Olds, an analyst at The Gabriel Consulting Group.
"Both Microsoft and Yahoo need this deal if they harbor any hopes of getting back into the lucrative search game," said Olds.
"Search has become the most reliable way of capturing eyeballs on the Internet and having a popular search engine is the basis for all of Google's success.