Microsoft Corp will announce plans to expand its relationship with online social network Facebook to provide web search and search advertising, a source familiar with the matter said on Thursday.
The expanded deal follows Microsoft's decision not pursue a take-over of Yahoo Inc to bolster its online search and advertising business as it tries to compete with Internet leader Google Inc. Microsoft bought a 1.6 percent stake in fast-growing Facebook for 240 million dollars in October, beating out Google in the investment.