Microsoft Corp. and Yahoo Inc. are preparing to link together their free instant messaging services as they take on entrenched messaging leader AOL and market newcomer Google Inc., a source close to the companies said on Tuesday.

Here is a great piece of co-operation between two major companies as they strive to take a share of the Instant Messaging market.

The deal, the first major alliance between two of the Webs main providers of instant messaging, will allow users of Microsofts MSN Messenger service and Yahoo Messenger to swap instantaneous text messages with each other.

A Microsoft spokeswoman and a Yahoo spokeswoman declined to comment on the alliance, first reported by the Wall Street Journal.

The tie-up, expected to be announced on Wednesday, will also give users of both services the ability to communicate via voice as well, a feature that up to now has been restricted to users within each service, the source said.

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