• by Laurie Sullivan  @lauriesullivan, December 5, 2009

Microsoft and Yahoo signed off on plans to create joint search and advertising services and sales and license services, but the two companies still wait for regulatory approval. The news seals the terms of the agreement announced in July, and pits the two against rival Google.

Friday's news came as a welcome sign for Jared Macke. The online marketing manager for Scottrade says Bing has performed well in paid search for the St. Louis, Mo. company -- much better than Yahoo. "I'm routing for the deal," he says. "It means fewer relationships to manage."

Not all agree with Macke's sentiment. "Even with the agreement done, we're still a long way from actually seeing Bing search results on Yahoo," says Aaron Goldman, managing partner at Connectual. "The deal still needs to be approved, and then implementation begins. By the time it all comes together, Yahoo's share of search will have eroded even further, making this a less lucrative deal for Microsoft."

Both Microsoft and Yahoo believe they will clear the hurdle early next year. The approved partnership will allow the two companies to begin working together.

In a joint statement, Microsoft and Yahoo gushed at the news. The two companies believe the deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers with more choices, better value, and increased innovation.