Microsoft, Yahoo Search Deal Reportedly Close

After more than a year of on-again, off again, a deal for Microsoft to buy Yahoo Search is now reportedly close to being signed.

Remember February last year when Microsoft offer $44.8 billion for Yahoo and was turned down? Since then there’s been endless speculation of some kind of deal between the two companies, often denied, but the rumors never quite stopped.

Now they seem to be coming to a boil, as All Things Digital has reported that several Microsoft bigwigs have flow to Yahoo HQ "to iron out the remaining issues."

While details are sketchy, the deal is reputedly for several billion ($3 billion upfront was one figure bandied around) for Microsoft to take over Yahoo’s search advertising business, and in return pay Yahoo a guaranteed amount every year. Yahoo will handle the display advertising for both companies.

Investor site 24/7 Wall Street has called the deal “imminent,” and it would seem to work to the advantage of both parties, especially Microsoft, whose share of the search market would jump to around 30%, although that would still be a long way behind Google.