While Yahoo's patent suit against Facebook might have looked like an IPO gimmick, it has lasted longer than Facebook's stock high, and might be worth more in the end. The two companies announced that they have entered into an advertising partnership and patent licensing agreement, thereby settling the dispute. The agreement includes patent cross-licensing, meaning Yahoo will gain access to Facebook's newly acquired patents from Microsoft, and Facebook will gain access to Yahoo's patents, including the 10 in question.
In addition to patent licensing, the agreement will also include a mutual advertising partnership. Together, the companies will form an advertising platform that will be available across both Facebook and Yahoo's global properties. The companies will also partner on Yahoo's media event coverage, bringing that existing content to Facebook's userbase through integrated social programs. This all makes sense considering the 10 patents in dispute had to do with media presentation and advertising.
What do the two companies think of the partnership? Hit the break for the reactions from executives at both companies.