Microsoft appears to have finally locked up rival Yahoo in a long-awaited Internet search partnership aimed at narrowing Google’s commanding lead in the most lucrative piece of the online advertising market.
A person with knowledge of the talks told The Associated Press that the details of the Microsoft-Yahoo alliance are expected to be announced Wednesday. This person spoke Tuesday night on condition on anonymity, confirming earlier reports, because the deal was not yet final.
Both Redmond, Washington-based Microsoft and Sunnyvale, California-based Yahoo declined to comment late Tuesday.
The deal does not appear to be as far-reaching as many investors envisioned.
For instance, Yahoo would not get cash payments in advance from Microsoft. That development could disappoint investors. Yahoo Chief Executive Carol Bartz had pledged she would join forces with Microsoft only for “boatloads of money.”