The Wall Street Journal is reporting that Yahoo and Microsoft “are moving toward sealing a search partnership, say people familiar with the matter — a deal that ends a protracted dance and unites the pair against Google. Microsoft, which had made a failed $47.5 billion takeover bid for Yahoo, appears to have finally won a piece of what it wanted from the Internet player — the volumes of search queries that run through Yahoo’s engine. In exchange, Yahoo is getting an opportunity to expand its own position in the market by remaining a force in search-advertising sales. The agreement, which could be reached as soon as Wednesday but could be delayed, involves Yahoo agreeing to use Microsoft’s Bing search engine on its own sites, these people say.” (Subscription Only)

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