A report on ‘The Wall Street Journal’ and ‘Businessweek’ identifies that Yahoo and Microsoft maybe sealing a deal after the interest Microsoft showed in Yahoo about a year ago.

According to the reports, the plan is that Microsoft’s Bing will replace Yahoo’s focus on its search engine. Advertising will not use Yahoo’s Panama and instead Microsoft’s AdCenter. But Yahoo will continue selling ads, and could get up to 80% of the revenue generated by them. However, Microsoft will be gathering all data based on user buying habits and searches.

Many analysts believe that Yahoo won’t benefit much in the long-term.

Compared with Google’s 65% market share, the Bing and Yahoo combination will probably be much lower at a predicted 30%.

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