We just announced with Microsoft that we have reached clearance for our search agreement, without restrictions, from both the U.S. Department of Justice and the European Commission.  We’ll now turn our attention to beginning the process of implementing the deal.

Here are some useful links to get more detailed information about today’s developments:

Search Alliance Official Website

Official Press Release

Yahoo! Search Blog

YDN Blog

Yahoo! Search Marketing Blog

Yahoo! Transition Center

Video: Yahoo! CEO Carol Bartz discusses Yahoo! & Microsoft’s new Search Alliance: Click here

Video: Yahoo! CEO Carol Bartz talks about Yahoo’s continued innovation in search: Click here

Official US DOJ Antitrust Division statement: Click here

We will continue to update Yodel with new information today and throughout the process.

As Yahoo! CEO Carol Bartz posted earlier this morning, we have announced a global search deal with Microsoft. Carol took a few minutes to shoot this video to explain the agreement, why we’re excited about it, why we did it, and what its benefits will be to consumers, advertisers and publishers:

Also, Carol and Microsoft CEO Steve Ballmer hosted a conference call together this morning on our campus to discuss the agreement with media and analysts. You can check out an archive on our investor relations site. And here are a few photos of them both from just after the call.

Nicki Dugan
Blog Editor

It’s inhumanly early in California, but it’s already a great day at Yahoo!. We’ve just signed a major search deal with Microsoft. Under the terms, Microsoft will become the search engine behind Yahoo! and we will become the worldwide exclusive relationship sales force for both companies’ premium search advertisers.

While you’ll read a lot about why this is good for our business and for advertisers, I want to talk about what’s in it for you -– the Yahoo! fan.

Here’s the rundown:

• Better search: You’ll still find search boxes all across Yahoo!, but this deal will make the difference between a great Yahoo! search experience and an awesome one. Some of the biggest brains in the business work on Yahoo! Search, and they will continue to innovate to create a better search experience on Yahoo!. As a result of the deal, Microsoft, which has great technologists and deep pockets,will have the scale to bring users faster, more useful and more personally relevant search.
• Better everything else: With Microsoft powering Yahoo! Search, we’ll be able to focus on the things we do best -– being the center of people’s lives online with properties like our homepage, mail, finance, news, sports, entertainment, mobile, etc. Sure, we’re the world’s largest online media company and your loyalty has made that possible. But we’re not satisfied – we still want you to say “wow” a lot more often. And that’s what makes this deal especially exciting.
• Better competition: Competition equals innovation. But with one player dominating 70% of search, that field has been pretty lopsided. This transaction will create a healthy competitor that’ll keep everyone on their toes.

In short, everything’s just going to get a whole lot better for you.

And one final note — what this agreement does not cover is any of Yahoo!’s other properties or products. In those areas, Microsoft can expect a fierce competitor.

We’ve set up a special site, www.choicevalueinnovation.com, that answers your questions.

Carol Bartz
CEO

Whether you’re celebrating Nowruz, Ostara, Shunbun no hi, or the vernal equinox, today is the first day of spring, people! Rebirth, revival, renewal, the end of a long cold winter, and a time to see if you can actually balance an egg on its point. Here’s what we fêted this week:

• omg! celebrity mamas!: The ever-popular gossip site, omg!, is giving you one more way to obsess about the lives of the rich, famous, and far-too-photographed. This week, realizing that you can’t seem to get enough of Katie/Suri, Gwen/Kingston, Angelina/(pick one) on omg!’s Goddess blog, the team has launched “Spotlight to Nightlight,” a biweekly video program that peers into the lives of celebrity mothers. Each three- to five-minute episode features host Ali Landry (former Miss USA and famed “Doritos Girl”) chatting up a different celebrity mom, discussing parenting tips or the latest mama making headlines. Ever wonder how much a starlet’s nanny makes? Get addicted here.
• IE8 4 Y!: Microsoft’s brand new Internet Explorer 8 browser launched this week. Minutes later, we made a Yahoo!-optimized version available. What’s in it for you? Easy access to Yahoo! Search, Yahoo! Mail, our toolbar, and our homepage. You’ll get instant visual results for weather, stock quotes, and movie reviews/showtimes when you use the browser’s search box (i.e., a three-day weather forecast shows up right inside a search pulldown menu). And, no matter what site you’re on, you can always access a preview window to check your Yahoo! Mail. More on the Yahoo! Search and Yahoo! Mail blogs. Download IE 8 optimized for Yahoo! here. (Not available for Macs. Duh.)
• Find photos with fast filters: Ever searched for just the right photo but gotten lost in a sea of stuff you don’t want? Yahoo! Image Search has just added a few new filters to hasten your mission. You can now narrow your scope by selecting black & white vs. color, restricting results to images that are either from Flickr or not, or even specifying the dimensions of the shot you’re after. And they promise more cool stuff to come. More here.
• Sometimes it’s the little things: The Flickr team rolled out two small tweaks that mean so much. If you’ve often found yourself irked by the “loading…” message you got when trying to narrow down your list of contacts, behold the people picker! It’s now lightning-fast when trying to find someone in your Contact List, share an image, or send Flickr mail. But wait, there’s more. For Flickr Pro members, the Stats page now shows real-time data for the day (no more waiting til midnight) and lets you drill down for daily details on up to 28 of the last days. More here and here.

Subscribe to the RSS feed (or add it to My Yahoo!) to get this Product Pulse every week.

The last 13 weeks have been a remarkable time here at Yahoo!. We’ve been living under the microscope in a way we never have before. There has been greater attention than ever on our strategy and our ability to execute against it. Some even questioned whether Microsoft’s unsolicited proposal would distract us from our mission, just as we were beginning to really push the pedal on our strategy.

Those people underestimated the determination of Yahoo!’s incredible people, spirit and culture.

Our first quarter was probably one of the most exciting quarters in our history in terms of delivering innovative products and services that really move the needle and make a difference for our users and customers: Acquiring Maven Networks. Launching Buzz, OneSearch 2.0, voice-activated mobile search, video on Flickr, Shine. Previewing AMP! from Yahoo! and SearchMonkey. Adding more Newspaper Consortium members. Establishing our New R&D labs in India and Israel. Our first quarter results proved that we have the right strategy, a fantastic team, and that our investments are starting to pay off.

All of this reinforced our board’s position that Microsoft’s offer undervalued our unique global franchise.

So, what’s next? With Microsoft’s withdrawal, we’ll be better able to focus our energy on growing our industry leadership and maximizing value for stockholders. We’ll continue to execute on our plan — making your Internet experience as personal, relevant, open and social as possible, serving advertisers so well they insist on working with us, and opening up Yahoo! in a way that developers dream of. And, we’ll also continue to pursue strategic opportunities that position us for long-term success.

Has this experience changed us? Of course, it has. We’ve emerged a stronger, more focused company with an even greater sense of purpose. I’m so proud of how this company has come together, put the noise aside, and showed the world that we have the resolve and determination to thrive in challenging times.

We know the spotlight will probably stay on us for a while. That’s fine — we have a clear path ahead and momentum to build on. And thousands of dedicated Yahoos around the world who have held up well to scrutiny. It’s now up to us to show what we Yahoos can really do.

By the way, I’m sure you’ve all read or watched the news about this. Frankly, there’s a lot of nonsense and misinformation in what’s being reported. Just so we are all clear, here’s what happened. The board took its mission very seriously. We clearly indicated to Microsoft that we were open to a transaction but only if it were on terms that fully recognized the value of Yahoo! and was in the best interests of our stockholders.

No one is celebrating about the outcome of these past three months… and no one should. We live and work in a competitive world and the Web is only going to get more competitive. Executing on our strategic plan is what matters most.

Finally, I’d like to thank the many of you who so passionately shared your support for Yahoo!. That’s what brings it all home for us.

Jerry Yang
CEO and Chief Yahoo

In case you haven’t already seen the news, Microsoft today withdrew its proposal to acquire Yahoo!. Here’s our press release, with comments from Yahoo! board chairman Roy Bostock and CEO Jerry Yang.

Nicki Dugan
Blog Editor

You might have read this by now, but our Board has unanimously concluded that Microsoft’s proposal is not in the best interests of Yahoo! and our stockholders, believing that it substantially undervalues Yahoo!. Here’s the press release and updated FAQ.

Nicki Dugan
Blog Editor

As I’m sure you’ve heard by now, Microsoft made an unsolicited proposal to acquire Yahoo! yesterday evening. Since then, we’ve gotten quite a number of questions about what this means for Yahoo!. Right now our board of directors is evaluating the proposal and looking at all of our strategic alternatives, including maintaining Yahoo! as an independent company.

A review process like this is fluid and can take quite a bit of time, so while there’s not much we can say right now, we did want to refer you to this brief FAQ for more information.

Nicki Dugan
Blog Editor