Yahoo! Inc. and AT&T Inc. have announced a long term partnership to share revenue generated from mobile phones and personal computers advertising.

This deal is built upon the already existing alliance between the two since the year 2001. While the financial details were not talked about, it would work in the following manner:

Yahoo will provide AT&T customers, search (pay-per-click ) and display advertising on mobile devices and PCs, in addition to enhancing and garnishing the looks of the existing AT&T's Web portal.

"We are now the search engine and the advertising engine behind all of (AT&T Mobility) customers." Marco Boerries, executive VP of Yahoo's Connected Life division. Yahoo! Should also be excited because the deal allows it access to about 70 million customers of AT&T.

The news came at a time when Yahoo! gave a disappointing forecast and its shares fell to about 11%.