Yahoo and Facebook have struck a “peace deal” over patent infringement lawsuits that includes expanding advertising and content partnerships, AllThingsD reports.Yahoo’s directors agreed to the deal in a phone conference this morning, according to the report.
As soon as former Yahoo CEO Scott Thompson was ousted, interim CEO Ross Levinsohn reportedly reached out to Facebook COO Sheryl Sandberg to settle the lawsuit.
The deal includes a “major expansion” of the ongoing partnership between Yahoo and Facebook, Kara Swisher of AllThingsD reports.
That includes a joint advertising sales effort and cross-licensing of some key patents between the pair.
Obviously Facebook has to like this move — the two companies had a good relationship before the messy lawsuits, with Facebook driving a lot of traffic to Yahoo through its Open Graph.
Now Facebook doesn’t have to resolve the dispute with a big pile of money, and Facebook and Yahoo can go back to pursuing projects that are mutually beneficial.
But no cash payment will change hands as part of the agreement, Swisher reports.
Discussions to settle the lawsuits started as soon as Yahoo’s board ousted Thompson, with Sandberg and Levinsohn running the talks, AllThingsD reports.