It was proposed that Microsoft & Yahoo would finalize negotiating the search deal by 27th October. But Yahoo has filed a document in SEC saying that the two parties have failed to close the deal before intended deadline as still some transaction details remain to work out. But they also stated that both the parties are working hard & a lot of progress have been made. This is exactly what they have said:
On October 28, 2009, Yahoo! Inc., a Delaware corporation (“Yahoo!”), and Microsoft Corporation, a Washington corporation (“Microsoft”), mutually agreed to extend the period to negotiate and execute a Search and Advertising Services and Sales Agreement and a License Agreement (the “Definitive Agreements”) reflecting and supplementing the provisions of such agreements as set forth in annexes to their binding letter agreement dated July 29, 2009 (the “Letter Agreement”). The Letter Agreement specified that the parties would execute Definitive Agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized. The parties are working diligently on finalizing the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible. The Letter Agreement was the subject of a Current Report on Form 8-K filed by Yahoo! on August 4, 2009.
And Nathania Johnson from Search Engine Watch contacted Microsoft. They replied that the deal might be implemented by early 2010 hopefully.
This big deal may got delayed. But more importantly it is still on course.