Microsoft and Yahoo have sealed their ten year search and advertising deal, according to reports.

The deal, which was announced in July this year, will see Yahoo's search results driven by Microsoft's search engine Bing, and Yahoo will be responsible for selling advertising.

Microsoft and Yahoo are joining forces to contend with dominating search engine Google, with the intention to increase profits for both companies.

In a joint statement, both companies have said:

“Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation.”

However, both companies are still waiting for the deal to be approved by the Department of Justice before they can go ahead with the full operation, which is expected to be in 2010.

During the ten year deal, the first five years will see Yahoo receiving 88% of the revenue from the search ad sales, while in the remaining second half they will receive 93% of revenues, it has been reported.

Research shows that searches are currently dominated by Google with 67% globally, while Microsoft and Yahoo control only 11% between them.

Yahoo predicts that the search ad deal and the combined efforts of both companies will boost their profits by $500m (£305m).

SOURCE: NMA, Telegraph