Financial Times FT.com

Microsoft agrees alliance with Facebook

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

Published: July 24 2008 23:48 | Last updated: July 24 2008 23:48

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

Thursday’s developments capped a week that has 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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