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Regulatory approval for the deal in Europe seems on track, as Yahoo and Microsoft await approval from U.S. regulators.
Microsoft's proposal to take over search on Yahoo's Web pages will make for a more competitive Internet advertising market, according to four major ad agencies.
Redmond's AdCenter is now powering paid search results for Yahoo and its partners in the U.S. and Canada. Next up, the shift for mobile and international sites.
An official announcement of a search and advertising deal between the two tech giants is expected to be made within the next 24 hours, according to All Things D.
The two companies say the move to combine advertisers on Microsoft's AdCenter tool is on track to be completed by the end of October.
The move to Bing-powered search is done, at least for algorithmic search in the U.S. and Canada. The two companies still need to iron out paid search and international markets.
So guess what Microsoft thinks of Yahoo Japan's decision to swap it out for Google as main search partner? Yeah, it's not too happy about it.
In an interview, Microsoft Senior Vice President Yusuf Mehdi talks about Bing's journey so far and the long road still ahead.
Yahoo says Tuesday that it has started testing the use of Microsoft's listings in Yahoo search in the United States.
Microsoft's co-founder has amended his patent infringement suit against Apple, Google, Facebook, and other tech giants, alleging that they're using technology owned by his firm, Interval Licensing.