The deal would see Microsoft Bing powering Yahoo Search.
As a part of this deal, around 400 Yahoo employees would move to Microsoft.
This comes to around 3% of all Yahoo workers.
Microsoft already has around 91,000 employees around the world.
The shift would only happen after the two companies manage to get regulatory approval for their deal.
Google is likely to pose opposition to this deal. It could take some time before we users see any change on the Yahoo search engine.