Facebook and Microsoft have tied the fabled knot in what is now a strategic alliance giving Microsoft exclusive rights for providing banner advertising and sponsored links on the social networking Web site.

The two companies got discussing sometime last week about the possibilities that they can create for each other. However the terms of the deal still remain behind closed doors.

Steve Berkowitz senior vice president of the Online Services at Microsoft told Reuters that the combination of Microsoft and Facebook’s strengths would be incredibly attractive to advertisers as they forge more meaningful connections with one of the largest, most engaged audiences on the Internet.

Facebook has more than 9 million registered users, and ranks as the seventh-most trafficked site in the United States.

Could it be that acquisitions and strategic alliances are the ‘new’ way to go for online businesses to progress and expand their product offerings? Or is it solely to increase revenues? Which way it turns out, not many can predict. But as of right now that seems to be the popular scenario, seeing from the way its working out between these two examples.