Microsoft, Yahoo deal on messaging

Yahoo and Microsoft said on Wednesday (12th October) they signed an interoperability agreement that would allow people who use their respective consumer instant messaging services to interact with each other. The companies expect to launch the free interconnectivity services in the second quarter of 2006.

Yahoo and Microsoft estimate a total of 275 million people use their IM services, although the two services trail the one offered by America Online. "Yahoo and Microsoft share a commitment to providing the highest-quality experience possible for consumers, and today's groundbreaking announcement underscores our desire to provide consumer interoperability between our thriving IM communities,'' said Terry Semel, chief executive officer at Yahoo.