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Posted by at 5:56 PM



Microsoft and Yahoo have finalized the terms of a broad search and advertising agreement intended to help them compete more effectively with Google.

The companies announced the agreement, which Microsoft's Bing search engine would power Yahoo's search results, and Yahoo would provide premium search-advertising services for both companies, in July.

They had hoped to finalize the deal in late October but needed more time to work out the details. In a statement on Friday, the companies said they hope that the transaction will close in early 2010 and that they welcome the broad support the deal has gotten from key players in the advertising industry.

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