A source close to the talks has told the media that Microsoft and Yahoo are on the brink of a deal to team up on Web advertising and effectively mount a challenge to the dominance Google has on the present market.
The source has spoken on condition of anonymity because the deal is yet to be finalised. Previousl, Yahoo CEO Carol Bartz has said she would only do a deal with Microsoft for "boatloads of money".
The deal would see the two companies share ad revenue, and Yahoo would use Microsoft's Bing search engine, as well as adding a "powered by Bing" button to its highest traffic sites.
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