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According to a comment made at Microsoft's Analyst Day today, Microsoft and Facebook are preparing a search and advertising deal that would lead to the integration of Microsoft's Live Search and search advertising into Facebook. Microsoft already provides ads on Facebook as part of a 'strategic alliance' and Microsoft holds a $240 million equity stake in the company. No information about the financial specifics of the deal were mentioned so far and it is not clear if this deal would be exclusive.

We wrote about Microsoft possibly acquiring semantic search engine Powerset just a few days ago when it was still a rumor. Today, both Microsoft and Powerset have confirmed that they have reached a deal. When rumors about this acquisition first appeared, the price for Powerset was supposed to be somewhere around $100 Million, though neither company has disclosed the final prize so far.

The new Live Mesh service that just launched as an invite only "technology preview" is Microsoft's attempt to tie all of our data together. Live Mesh synchronizes data across multiple devices (currently just Windows computers, but theoretically it will extend to mobile and other devices in the future) as well as to a web desktop that exists in the cloud. It can sync data across devices used by a single users, as well as create shared spaces for multiple users. On the surface, Mesh is a lot like competing file sync services such as Dropbox, SugarSync (which we covered in January), and even Microsoft's own FolderShare product. But what sets Live Mesh apart is its platform approach.