Microsoft, Yahoo close to search deal

Software giant Microsoft is now close to another search partnership with Yahoo, InformationWeek has reported.

The terms between the two companies are reportedly still being put into detail, but both firms have previously discussed partnerships that would see Microsoft purchase Yahoo’s search advertising business for both upfront cash and ongoing payments.

The two companies have been upgrading their search features, possibly in an attempt to steal market share from Google. If the two firms combine their forces, they could prove to be a threat to the market leader.

Microsoft introduced its Bing search engine, while Yahoo has also introduced an engine of its own that offers the ability to create notes based on search results and share information with contacts.

Microsoft chief executive Steve Ballmer said recently at a media summit in New York that the opportunity to enter a partnership with Yahoo still remained.

“Over time, there’s still a good opportunity to do a deal,” he said.