Yahoo and Microsoft have just finalized the search deal, which was announced back in July. The companies have finalized and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement in accordance with the letter agreement announced in July. (Official statement from both the entities mentioned below)

binghoo

The companies released the following joint statement:

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.

Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010.

As part of the search deal, Bing will now power Yahoo search. It remains to be seen how much time it will consume, and what impact will it have once Bing becomes Yahoo‘s search engine?

With the announcement of this deal, it would be interesting to keep an eye on Yahoo’s and Microsoft’s individual shares as Yahoo’s share declined last time the search deal was announced.