Facebook to integrate Microsoft Web search, search ads

Microsoft and Facebook strengthened their existing partnership Thursday with the announcement that Microsoft would be powering the social network's Web search and sponsored links.

The announcement was made at Microsoft's annual financial analysts meeting in Redmond. Sources indicate the search services will be integrated into Facebook without many changes to the overall site design.

Facebook will begin using an API from Microsoft some time in the fall. The move mirrors a similar deal between Google and MySpace made almost two years ago. The search giant paid $900 million for MySpace's search box and ads.

Google's deal extends across all Fox Interactive sites, which include Rottentomatoes.com, Gamespy.com, fox.com, americanidol.com, and others. In addition to search, Google also has rights to advertising on these sites.

The actual monetary value of Thursday's Facebook deal was not disclosed, although Microsoft previously invested $240 million in the site last October. That deal made Microsoft the exclusive third-party provider for advertising on Facebook.

BetaNews will follow up this story with more details as they are released by the companies.