Microsoft and Yahoo are insisting that the delay of their search-and-advertising partnership deal is due to details still needing to be worked out, and not some larger structural issue that could scuttle the 10-year agreement before it begins in 2010.

"Microsoft and Yahoo are committed to this agreement and believe this is a highly competitive deal that is good for consumers, advertisers and publishers," a Microsoft spokesperson said in an e-mail to eWEEK. "We have made good progress in finalizing the definitive agreements. Given the complex nature of this transaction there remain some issues that need some additional clarity and definitive details."

Teams from both companies, the statement continued, "have mutually agreed to extend the period to negotiate and execute the agreement." Optimism abounds, apparently, "that we will be able to close this deal by early 2010."

The Microsoft statement effectively mirrors Yahoo's Oct. 28 SEC filing, which stated that, "given the complex nature of the transaction, there remain some details to be finalized." The Department of Justice is also evaluating the agreement.

Under the terms of the agreement, Microsoft's Bing search engine will power Yahoo's back-end search, while Yahoo will handle worldwide sales for both companies' search advertisers. Despite bowing out of what one Yahoo executive termed the "megawatt war" for search, Yahoo has attempted to demonstrate its viability as an online property by announcing new features and offerings for its front-end products, such as Yahoo Messenger and Yahoo Mail.

Recent scuttlebutt also has Yahoo attempting to index Twitter content on its site, in conjunction with real-time search provider OneRiot. If those rumors prove founded, Yahoo will join Microsoft and Google in attempting to integrate the microblogging site's content into its own offerings.

Financial analysts seemed calm about the deal delay.

As reported earlier Oct. 29 on eWEEK.com, Broadpoint AmTech analyst Ben Schachter said in a research note: "We do not view this as anything more than both companies looking for a bit more time to cross their t's and dot their i's."