According to reports it looks like Facebook and Microsoft have agreed a deal which will see Microsoft Live Search integrated into the Facebook service. Along with the related advertising of course.

This should come as no great surprise to anyone who watches the technology market for trends, as Microsoft had already 'expressed an interest' in Facebook when it bought $240 million worth of shares in the social networking giant last year.

OK, so $240 million only got it a measly little 1.6 percent Facebook stake, but it did enable Microsoft to get an exclusive deal on advertising outside of the US Facebook market.

It also rather cemented the intention to do more business at some point in the not so distant future. That point would appear to be now.

The Inquirer suggests that "The cozy alliance between Microsoft and Facebook only served to illustrate Redmond's soured relationship with Yahoo."