Facebook and Yahoo have reached a settlement in their twin patent infringement cases and agreed on an advertising deal.
The companies announced Friday that they would be cross-licensing each's respective patents and entering into an agreement which would allow both sides to collaborate on advertising deals and promote content.
"We are looking forward to building on the success we have already seen to provide innovative new products and experiences for both consumers and sponsors," said interim Yahoo CEO Ross Levinsohn. "Combining the premium content and reach of Yahoo as the world’s leading digital media company with Facebook provides branded advertisers with unmatched opportunity."
Yahoo filed suit against Facebook in March claiming that the company had based its "entire business" on 10 key patents it owned. The company cited patents it held regarding streaming video, advertising, and timeline content.
Facebook soon fired back with a patent suit of its own, claiming that Yahoo was infringing upon patents it held in the social networking and web-based application spaces.
"Yahoo's new leaders are driven by a renewed focus on innovation and providing great products to users," said Facebook chief operating officer Sheryl Sandberg. "Together, we can provide users with engaging social experiences while creating value for marketers."
Meanwhile, Levinsohn is reportedly the "last man standing" in Yahoo's search for a new CEO, according to AllThingsD.