The two companies finalised a 10-year agreement that will see Microsoft power Yahoo search.
Yahoo will become the exclusive worldwide sales force for both companies' premium search advertisers outside of display.
Each company will maintain its own separate display advertising business and sales force.
The Microsoft/Yahoo deal, first announced in July, aims to help the two companies rival Google.
A joint statement said: "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."
Yahoo will become the exclusive worldwide sales force for both companies' premium search advertisers outside of display.
Each company will maintain its own separate display advertising business and sales force.
The Microsoft/Yahoo deal, first announced in July, aims to help the two companies rival Google.
A joint statement said: "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."
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