Microsoft and Facebook Enter Into Search Partnership

Microsoft Senior Vice President Satya Nadella announced at the company's financial analyst meeting that their partnership with Facebook has been extended to include search.

The existing partnership has Microsoft serving up banner and sponsored ads on the popular social network. Last year, Microsoft paid $240 million to own a 1.6% stake in Facebook, a private company.

Microsoft expects Facebook members to see the integrated Live Search, including search ads, by the end of the 2008.

Earlier today, Facebook announced a new initiative, opening up its platform to aggregate feeds from other sites, including local search site Citysearch and other social networks such as Digg and Twitter.

In March, Microsoft announced its alternative to Google's OpenSocial, a data portability partnership across 5 social networks: Facebook, Bebo, Hi5, Tagged and LinkedIn.

Meanwhile, Microsoft has announced a reorganization which will split the Platforms and Services Division into two new divisions: Windows/Windows Live and Online Services.