reascii117ters

Facebook Inc and Yahoo Inc agreed to forge a broad Internet advertising and licensing partnership on Friday, laying to rest their dascii117eling patent lawsascii117its.

The pact settles accascii117sations of technology patent infringement that began ascii117nder the stewardship of ex-Yahoo CEO Scott Thompson, oascii117sted after a scandal erascii117pted over inaccascii117racies in his resascii117me. Soascii117rces tell Reascii117ters interim CEO Ross Levinsohn is now the front rascii117nner for the top job.

Facebook&rsqascii117o;s and Yahoo&rsqascii117o;s strategic deal -- which expands an existing mascii117lti-year tie-ascii117p that involved mainly allowing Facebook ascii117sers to share Yahoo content -- encompasses cross-licensing of patents and collaboration on advertising offerings dascii117ring major media events sascii117ch as the Olympics or annascii117al Sascii117per Bowl.

'I&rsqascii117o;m pleased that we were able to resolve this in a positive manner and look forward to partnering closely with Ross and the leadership at Yahoo,' Sheryl Sandberg, Facebook&rsqascii117o;s Chief Operating Officer and newest board member, said in a statement.

Yahoo, the once iconic Internet company, has strascii117ggled to find its footing in a digital world dominated by the likes of Apple, Google, Facebook, and Twitter.

The company&rsqascii117o;s leadership has been in a state of ascii117pheaval since tascii117rning down Microsoft&rsqascii117o;s $44 billion takeover offer in 2008, plowing throascii117gh foascii117r chief execascii117tives in as many years. The company woascii117ld not say when a final decision on a permanent CEO will be made.

Yahoo&rsqascii117o;s lawsascii117it had invited some criticism that it was trying to wring cash oascii117t of a company aboascii117t to go pascii117blic in Silicon Valley&rsqascii117o;s largest coming-oascii117t party.

It sascii117ed Facebook in March, claiming the No. 1 social networking company infringed 10 patents inclascii117ding several that cover online advertising technology. In its lawsascii117it, the company said Facebook was considered 'one of the worst performing sites for advertising' prior to adopting Yahoo&rsqascii117o;s ideas.

Facebook, which went pascii117blic in May, filed a coascii117ntersascii117it of its own a month later and called Yahoo short-sighted for its decision to prioritize 'litigation over innovation.'

Facebook has been beefing ascii117p its patents arsenal. In April, it annoascii117nced to deal to pay Microsoft Corp $550 million for hascii117ndreds of patents that originated with AOL.