Microsoft-Yahoo deal faces hurdles

SEATTLE: Microsoft Corp has confidently described its planned search advertising deal with Yahoo Inc as a "win-win", but the software company's legal chief is prepared to concede that the outcome is not certain.

The deal, struck in late July after months of talks, faces a tough regulatory review, and the possibility that it won't be enough to effectively challenge Google Inc.

"For both companies, it would be right to say this is not risk-free," said Microsoft general counsel Brad Smith. "I don't know of any investment that is."