Yahoo’s CEO, Marissa Mayer, announced on Tumblr that they have renewed and extended their deal with Microsoft on their search front.

In short, Bing will still power much of Yahoo Search but Yahoo does gain more control. Instead of Bing powering almost all of the ads on Yahoo Search desktop, now Yahoo only has to show Bing Ads on 51% of those searches.

Danny Sullivan has an excellent FAQ on the deal.

I am not surprised to see the deal renewed, was hoping to hear a hail-marry where Yahoo goes at search alone again, but that was highly doubtful.

Marissa said:

Forum discussion at WebmasterWorld and Twitter.