Yahoo’s interim CEO Ross Levinsohn has been working on the issue from the very day he started handling the reins of the ailing internet company. From Facebook’s side it was chief operating officer Sheryl Sandberg who called the shots and this was evident from the statement. Levinsohn said, “We are excited to develop a deeper partnership with Facebook, and I’m grateful to Sheryl and her team for working hard together with our team to develop this dynamic agreement.”


Ms Sandberg on the other hand said, “Yahoo’s new leaders are driven by a renewed focus on innovation and providing great products to users. Together, we can provide users with engaging social experiences while creating value for marketers.”


The news about this alliance was broken by All Things D even before the official announcement was made.


According to the statement the companies are going to enter a cross-licensing deal whereby the companies will work towards bringing Yahoo’s “large media event coverage to Facebook users by collaborating on social integrations on the Yahoo site.”


The two companies locked horns when Yahoo’s then-CEO Scott Thompson dragged Facebook to court over patent infringement. Some of the technologies which according to Yahoo! were infringement upon by Facebook include advertising, privacy, site customization, social networking and integrated communications in social networking.


No financial details have emerged yet about the cost of settlement.