Yahoo and Facebook announced on Friday that they have reached definitive agreements to settle all patent lawsuits between the two companies and launch a new advertising partnership.
Under the agreements, which include a patent portfolio cross- license, Yahoo and Facebook will work together to secure advertisements run on both sites and further integrate sharing between the two sites.
"Yahoo! and Facebook will also work together to bring Yahoo!'s large media event coverage to Facebook users by collaborating on social integrations on the Yahoo! site," the two companies said in a joint press release.
"We are excited to develop a deeper partnership with Facebook, and I'm grateful to Sheryl (Sandberg) and her team for working hard together with our team to develop this dynamic agreement," said Ross Levinsohn, interim chief executive officer of Yahoo.
"Combining the premium content and reach of Yahoo! as the world 's leading digital media company with Facebook provides branded advertisers with unmatched opportunity," he said.
Sheryl Sandberg, chief operating officer at Facebook, said she is pleased to see the two companies could resolve their dispute in a positive manner.
"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," Sandberg said.
According to technology news website AllThingsD, which reported the settlement earlier Friday, no actual cash payment will change hands over the patent dispute.
Yahoo filed a lawsuit against Facebook in March, claiming the social network company infringed ten of its patents covering advertising, privacy, messaging and social networking. Facebook filed a countersuit against Yahoo in early April.
According to AllThingsD, the Yahoo board first agreed to sue Facebook as former Chief Executive Officer Scott Thompson promised a big financial payoff from the suit. But they reached out for settlement with Facebook shortly after Thompson stepped down over academic credentials in May.