Now, Microsoft and Yahoo will let their users instatnt message each other to take on IM rival AOL and newly arrived Google Talk. Under the agreement, Microsoft's MSN Messenger users will be able to exchange messages and voice call over the Internet with Yahoo Messenger subscribers starting in the second quarter of 2006.

Microsoft and yahoo will create a combined community of 275 million users will give the Google and AOl a tough fight. AOL is currently the market leader in the instant messaging space with a share of 56 percent.