We've gotta give it to Microsoft... building a YouTube app for Windows Phone 8 that strips out advertising and allows users to download streaming videos was one hell of a way to get Google's attention about the lack of an official app for the platform -- even if it managed to attract ire at the same time. Now, multiple reports are coming in that both companies have reached an agreement of sorts, which will result in an app that's fully compliant with YouTube's Terms of Service in the coming weeks. You might've already guessed it, but unlike Microsoft's most recent conciliatory update to its YouTube app, the next version will serve up ads. You'll find a joint statement from both companies after the break. Now that the pair are learning to cooperate, might we suggest they take a look at Gmail?

Joint statement from Google and Microsoft

Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube's API terms of service, including enabling ads, in the coming weeks. Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time.

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