Angelo PC

Keep your ears open for an announcement that Microsoft and YAHOO! have come to an agreement over the future of their search and advertising businesses. Both companies have been trying to hammer-out a deal, for over a year now.

While both parties claim nothing has been signed, they also agree that negotiations are complete and paperwork is just a formality, at this point. The final deal is supposedly far less-sweeping than the original plans.

Sources say there will be no initial payment made to YAHOO! and that the deal focuses more on sharing revenue. Microsoft’s search technology will be used on YAHOO! sites, but there is no word on whether it will be “powered by Bing”.

The official announcement is supposed to be made within the next 24 hours.