Today, a number of rumors about a potential partnership between Yahoo and Microsoft surfaced once again. Almost a year ago, after months of back and forth between Microsoft and Yahoo, we thought any deal between the two companies was finally off the table, but rumors about potential deals continued to bubble up regularly in the last few months. Now, some news outlets are reporting that the two companies may be close to signing a partnership agreement that would allow them to collaborate on search technology and advertising. Bloomberg’s Dina Bass, citing anonymous sources, reports that a deal could be finalized within the next two weeks.

None of these sources, however, seem to be very clear about the exact details of the deal. With Bing, Microsoft has developed a product that can compete head-to-head with Google’s search engine. Yet, even though Bing is slowly gaining ground and now has more than 10% of the search market according to some sources, overcoming Google’s inertia would a very difficult challenge for any competitor, and a partnership with Yahoo could double Bing’s market share over night. For Yahoo, there is also an incentive to make a deal now, as Bing is likely to steal at least some market share away from Yahoo. Read more…

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