Tuesday Satya Nadella, Microsoft's Senior Vice President, Online Services Division, said that Bing is now powering Yahoo!'s search results in the U.S. and Canada. Currently this only applies to English results, however other languages will come "in the weeks and months ahead."

"We continue to work hard on the migration to adCenter, and are optimistic about completing this phase later this fall," Nadella said in a Bing community blog. "As we have said all along, our primary goal is to provide advertisers with a quality transition experience in 2010, while being mindful of the holiday season."

This marks the first milestone in the Microsoft/Yahoo 10-year agreement that has the latter company to use Microsoft's adCenter advertising platform while Microsoft’s Bing engine powers Yahoo's search results. The deal was approved here in the States (and Europe) back in February and is expected to be fully implemented in roughly two years.

The road to Tuesday's announcement spans back to Q1 2008. Microsoft initially proposed an acquisition of Yahoo for $31 a share (roughly $44.6 billion), however the Yahoo board of directors rejected the bid weeks later. Additional proposals were made and refused throughout the year.

By Q1 2009, Yahoo CEO Jerry Yang was replaced by Carol Bartz, and a search partnership between Microsoft and Yahoo was announced later in July. Now surfers in the U.S. and Canada will find the "Powered by Bing" caption on search results, displayed at the bottom of the page.

"This is a great milestone for Bing and Yahoo! and our customers, and we are happy to report the transition has gone smoothly and we feel great about the progress our search alliance has been making over the summer," Nadella said.