As part of the recent Microhoo deal, Microsoft will hire 400 Yahoo employees and pay the Web giant $50 million annually for three years. Also, If Microsoft cannot deliver to a certain percentage of Google's success, Yahoo can back out of the deal.

Yahoo and Microsoft have announced a long-rumoured internet search deal that will help the two companies take on chief rival Google.

Apple, Microsoft, and 18 other companies are being sued for patent infringement by Texas-based Tsera which claims to have invented the touchpad.

Microsoft has announced that Windows 7 and Windows Server 2008 R2 have hit the RTM milestone. OEMs can get their hands on it July 24, while MSDN and TechNet subscribers will be able to get it on August 6. Consumers will have to wait until October 22.

Kevin Turner, Microsoft's COO, told partners during his Worldwide Partner Conference keynote about how Apple's lawyers wanted Microsoft to take down their Laptop Hunter ads.

The world's largest software maker said profit dropped by 32% to US$2.98 billion. Sales slipped to US$13.65 billion.

As tech giants IBM, Yahoo, Apple and Microsoft report earnings this week, analysts say they expect headwinds and will look for how the companies plan to grow when the economy recovers.