Microsoft and Yahoo are on the brink of sealing an online alliance that could create a more formidable rival to Google in the search business.
The deal had yet to be formally concluded late on Tuesday but the major terms had been agreed in principle and, according to one person close to the discussions, an agreement could be announced on Wednesday.
Successful completion of the talks would mark an end to Microsoft's 18-month pursuit of Yahoo, which began with an unsolicited full takeover bid that rocked the internet world. Since last summer, the software giant has been pushing for a looser alliance that would combine the search technology and search advertising systems of the two companies and give it a better chance to catch up with Google.
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