Financial Times FT.com

Microsoft agrees alliance with Facebook

By Richard Waters in Redmond, Washington, and Kevin,Allison in San Francisco

Published: July 25 2008 03:00 | Last updated: July 25 2008 03:00

Microsoft yesterday predicted continued heavy costs from its attempt to go head-to-head with Google and announced an online search alliance with Facebook, as it sought to convince Wall Street that it could recover from its failed bid for Yahoo.

Yesterday's developments capped a week that has greatly added to pressure on Steve Ballmer, chief executive, to prove that he can get results from Microsoft's long-running and expensive efforts to become a major force in the internet business.

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