Microsoft and Yahoo have finalized the terms of a broad search and advertising agreement intended to help them compete more effectively with Google.The companies announced the agreement, which Microsoft's Bing search engine would power Yahoo's search results, and Yahoo would provide premium search-advertising services for both companies, in July.

Microsoft and Yahoo believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation," the partners said.