Gasta Tech Update: Microsoft and Yahoo have closed the deal.

Gasta sources say WebProNews received an email from a Yahoo representative saying that they have "finalized and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement in accordance with the letter agreement announced in July."

Statements from the two companies are as follows:

“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! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010.”


Original Article: Kara Swisher of Boomtown, who is normally a pretty reliable source of industry scoops, is reporting that Yahoo and Microsoft may be very close to finally signing their much-anticipated search and advertising deal. According to Swisher, though she has not received confirmation from either party, the two companies may have their agreement in place by the end of the week.

"If all goes well, the various Microsoft and Yahoo execs–who have been ferreted away over the last weeks busy dotting all the i’s and crossing all the t’s on the massive document–could even turn in their deal homework to their bosses for signature by the end of the week," says Swisher. She cites "sources close to the situation" as the basis of her lead.

The deadline for completing the agreement was October 27, but both companies basically chalked up the lack of completion to the size and complexity of the document. They want to make sure all of the details are in there and are clear.

The deal isn't just waiting on the two companies to finalize a document, though. It also requires the approval of a bunch of government regulators, and not just in the U.S.

"And, several sources said those government approvals are now nearing completion at the Justice Department, even though the Federal Trade Commission might still ask for more assurances on privacy issues related to online advertising and consumer data issues," writes Swisher. "International regulatory approval is another story, especially in Europe, which could further delay the implementation of the partnership, since it is unlikely the pair would move forward without clearance globally."