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Edition: U.S. Article Comments (0) Email Print Reprints Read California governor debate turns into verbal brawl 13 Oct 2010 September home foreclosures top 100,000 for first time 2:29am EDT UPDATE 1-Microsoft issues its biggest-ever security fix 12 Oct 2010 Rescued Chile miners recover, face celebrity status | 3:02am EDT Republicans likely to take House at election: Reuters/Ipsos poll | 13 Oct 2010 Discussed 183 California governor debate turns into verbal brawl 69 Obama administration appeals ruling backing gay marriage 69 Republicans to take House at midterm vote: Reuters/Ipsos poll Watched Banksy takes on the Simpsons Tue, Oct 12 2010 Red faces over top model gaffe Tue, Sep 28 2010 From the mine to the minefield Wed, Oct 13 2010 Microsoft deepens Facebook ties in Web search battle Tweet This Share on LinkedIn Share on Facebook Related News UPDATE 3-Microsoft deepens Facebook ties in Web search battle Wed, Oct 13 2010 Google's spending spree tests nerves on Wall Street Tue, Oct 12 2010 China's Taobao launches Web search engine Tue, Oct 12 2010 UPDATE 1-China's Taobao launches Web search engine Tue, Oct 12 2010 Microsoft new phones win favorable reaction Tue, Oct 12 2010 Analysis & Opinion Social gaming — what the real players say Changing journalism; changing Reuters Related Topics Technology » Media » Stocks The Microsoft logo hangs from a window during the grand opening of Microsoft's first retail store in Scottsdale, Arizona in this October 22, 2009 file photo. Credit: Reuters/Joshua Lott By Alexei Oreskovic MOUNTAIN VIEW, California | Thu Oct 14, 2010 1:44am EDT MOUNTAIN VIEW, California (Reuters) - Microsoft Corp deepened its ties with social networking company Facebook on Wednesday, bolstering its fledgling Bing search engine to catch up with Google Inc. Starting on Wednesday, Bing will take data posted on Facebook -- such as users' "likes" or preferences -- and use that information to provide more relevant search results. The tie-up between the world's largest software company and the largest social network potentially pushes Web searches -- one of the Internet's earliest activities -- in a new direction. It underscores the growing competition between Facebook's 500-million member service and Google, whose search business has dominated the Web in past years. "Google owned the old Web, the content-centric Web. Facebook has early leadership in the new Web, the social web," said Ray Valdes, an analyst at industry research firm Gartner. "This is the real long-term conflict. Microsoft in that sense, is a secondary player in this new battle." Analysts said the new social search features are unlikely to immediately boost Bing's market share -- which has been creeping up since launching last year -- but noted that the deal allows Bing to differentiate itself, with access to information that Google doesn't currently have. Facebook executives said they hoped that other search engines would also use the company's social data in the future, but Chief Technology Officer Bret Taylor said that Facebook was only working with Microsoft for the time being. "Right now Microsoft is such a close partner to us that for the foreseeable future I think we just will be working with Microsoft," said Taylor, in an interview following the announcement, which took place at Microsoft's Silicon Valley offices. Microsoft invested $240 million in Facebook in 2007, giving it a 1.6 percent stake. The two have forged various business collaborations over the years. A Google spokesman said in an emailed statement that the company welcomes competition that helps deliver useful information and expands user choice, and that having strong competitors benefits Google by making the company work harder. Microsoft, the world's largest software company has stepped up its efforts within its online services division -- which lost $2.3 billion last fiscal year -- to challenge the dominance of Google, the world's largest search engine. Its shares closed up 2 percent at $25.34 on the New York Stock Exchange. The Facebook data provides important "signals" to help refine search results, Microsoft Online Services Division President Qi Lu told reporters. As part of their agreement, Bing will be able to access users' publicly available Facebook profiles and their "likes" on the social networking service, and deliver search results tailored to individual preferences. "The thing that makes Microsoft a great partner for us is that they really are the underdog here," Facebook Chief Executive Officer Mark Zuckerberg told reporters at Microsoft's Silicon Valley offices. "Because of that they are in a structural position where they're incentivized to go all out and innovate." Microsoft introduced the overhauled version of its search engine last year, and forged a 10-year partnership with Yahoo that merges the companies' back-end advertising systems, offering marketers a larger audience. 1 2 Next Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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