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Microsoft signs Facebook search deal

Posted on 25 Jul 2008 at 09:06

Microsoft has penned a deal with Facebook, which will see the social networking site integrate Microsoft's Live Search and search ads into the site.

The deal represents a further deepening of the relationship between the two companies, which already sees Microsoft running graphical display ads on Facebook pages.

Back in October, Microsoft also purchased a 1.6% stake in Facebook for $240 million, valuing the social networking site at $15 billion.

The move comes as Microsoft looks to draw a line on its failed Yahoo bid, and began looking to life beyond former online services boss Kevin Johnson, who is quitting to takeover at Juniper Networks.

Steve Ballmer must be hoping the news will assuage investors, after he was forced to defend defends Microsoft's heavy losses in online services at its investor's day.

Author: Stuart Turton

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