Facebook and Microsoft Sign Search Deal

July 24th, 2008 at 12:00 am

facebook microsoft search deal

Facebook and Microsoft have just signed a deal that will enhance their existing partnership.

Microsoft announced that it had expanded its existing pact with Facebook, the world’s largest social networking site, to provide Web search and search advertising in addition to its existing deal to run graphical display ads on Facebook pages.

Microsoft and Facebook  have had a long relationship for the past years.  Microsoft is the exclusive provider of banner advertising and sponsored links on Facebook using Microsoft’s digital advertising solutions and the Microsoft adCenter platform. The two companies also agreed to work together on future technology and advertising initiatives.   Microsoft says, “Our collaboration with Facebook is about joining our cutting-edge advertising technology and sales force with a true innovator in social networking. We believe that the combination of Microsoft and Facebook strengths will be incredibly attractive to advertisers as they forge more meaningful connections with one of the largest, most engaged audiences on the Internet. The consumer assets brought to bear by this relationship will be very hard to match.”

Today after the  massive reorganization of the former Platforms and Services Division at Microsoft into Windows/Windows Live and Online Services divisions, officer in charge of the Online Services Division, Satya Nadella said the expanded Facebook deal would be implemented in the next few months and "carry both our Web results, as well as our page search advertising."

No press release has been made by Facebook nor Microsoft yet but the Wall Street Journal confirms that the deal has been signed and sealed.

In retrospect, Google and Myspace share a very similar partnership.  Social Netwrok plus search is apparently profitable but the Google and MySpace has not yet produced sky high results.