Microsoft and Yahoo! are set to strike a long-awaited deal

USERS will probably not notice all that much. But the deal may be seen one day as a significant event in the internet industry. Microsoft and Yahoo!, the world’s biggest software firm and its leading online portal respectively, have reportedly reached a web search and advertising deal after years of speculation about a tie-up. The combination, which is expected to be announced on Wednesday July 29th, is not as far-reaching as originally envisaged. But it is likely to create a serious rival to Google, the online giant that dominates both of these markets.

The agreement, whose details are yet to be made public, is supposed to help both parties overcome their most pressing problems. Microsoft will increase significantly the use of its search service, called Bing, and its platform to serve online advertisements. Yahoo! will use both of them on its websites. The web portal, for its part, will be able to cut costs and increase revenues. Yahoo! will no longer have to invest millions in its search and advertising technology. It will also get more money for the ads placed next to its search results. …