Microsoft digital head Qi Lu took to the stage at the Web 2.0 Summit conference this morning, where he confirmed a “strategic” deal with Facebook and Twitter to integrate real-time information into Microsoft’s Bing search service.

BoomTown broke the news of those deals earlier today.

Top Microsoft exec Yusuf Mehdi did a demo of the new tweet-powered search for Twitter; the Facebook integration is to come later.

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In a stunning one-two punch, Microsoft will announce separate nonexclusive deals today with both Facebook and Twitter to integrate their real-time feeds of status updates into the Bing search service.

According to sources, Microsoft digital head Qi Lu will announce the deal onstage in a few hours at the Web 2.0 Summit.

BoomTown reported earlier today that the Microsoft data-mining deal with Twitter was poised to be announced.

The first-mover deal by Microsoft, needless to say, is a solid blow to Google, which has also been talking with both companies about a similar arrangement, because–for the first time–data will be available on Bing that are not available on the search giant.

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According to sources, Microsoft is close to striking a nonexclusive data-mining deal with Twitter to integrate the microblogging service’s full feed into the results of its Bing search service.

News of the deal, which was still being worked on by engineers and execs at both the software giant and the start-up as late as yesterday, could even come as early as today at the Web 2.0 Summit conference in San Francisco.

But sources close to the situation caution that the deal could still run into a snag and was not yet complete, although it seems more likely than not that a deal will soon be struck with Microsoft first and then Google, which is the other company Twitter has also been talking to.

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John Battelle, the founder, chairman and CEO of Federated Media Publishing, told his staff this morning that he will begin a search for a new top exec to take the company into its next stage of growth.

In a post on the FM Web site, Battelle said that he was not leaving the San Francisco-based company and wrote that the new exec–whose title could be CEO–would report to him.

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Here’s the video of Web 2.0 Summit host John Battelle interviewing Facebook CEO Mark Zuckerberg a few weeks ago, in which Battelle floated a rumor that the social-networking site might be interested in buying Twitter.

If you want to see the exchange, it starts at 22:15 minutes, when Battelle asks: “Is Twitter just a feature of Facebook?”

Awkwardness ensues from there until 23:07 minutes, with no direct question about an actual acquisition effort asked–getting Zuckerberg out of fibbing, since talks between the pair were then going on.

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About three weeks ago, Facebook and Twitter ended several weeks of serious talks, in which Facebook was offering to acquire Twitter for $500 million of its stock, which also included a cash component. While rumors of Facebook’s interest were brought up in an interview with Facebook CEO Mark Zuckerberg at the Web 2.0 Summit a few weeks ago, some shot down the idea as silly. Quite incorrectly, as it turns out, since top execs at both Facebook and Twitter were right then at the tail end of discussions, which were initiated by the privately held Facebook in mid-October, about bringing the two together. Those talks, sources on both sides said, are now over. So why did the deal break down?

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I blame post-election exhaustion for rendering me comatose after Tuesday, which is how this video I did at the Web 2.0 Summit in San Francisco last week got stuck in my to-do-later pile.

Well, it has since been fished out, including interviews with conference organizers, John Battelle and Tim O’Reilly, as well as Demand Media’s Richard Rosenblatt (who is apparently scared of me, which is just the way I like it) and Microsoft’s man-in-Silicon-Valley Dan’l Lewin.

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Let’s get this out of the way: BoomTown completely missed Lionel Richie perform, cooling our heels outside behind the rope line at the MySpace party in San Francisco last night.

Major bummer.

That aside, I did finally get in and did a video at the rocking event, which the SoCal-based social-networking site threw after the day’s proceedings at the Web 2.0 Summit.

It was the scene of a lot of wild partying, with a lot of swinging and packed most of the night, even as the supposed gloom of the econalypse was settling over Silicon Valley.

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Is it just me or does it feel like the whole odd public back-and-forth between Yahoo CEO Jerry Yang and Microsoft CEO Steve Ballmer is beginning to mimic the endless loop of the deeply annoying relationship between Ross Geller and Rachel Green on the long-running NBC television hit, “Friends”?

At least in their star-crossed hijinks, Ross and Rachel smooched from time to time in between the juvenile bickering and push-me-pull-you antics.

But with Yang and Ballmer, it has been only juvenile bickering and push-me-pull-you antics 24/7, which is why BoomTown wishes they would just get a room.

A conference room to negotiate in, of course! (Get your minds out of the gutter!)

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Well, this was certainly predictable–the mindless piling on of Yahoo CEO Jerry Yang now taking place in the blogosphere, in the wake of yet another setback for the troubled Internet company.

This time, it comes after the collapse of the search advertising deal with Google yesterday.

BoomTown is not saying the co-founder of Yahoo does not deserve criticism for how he has run the company since last summer.

Nonetheless, it is simply lazy to just call for Yang’s ouster as the panacea for what ails the company. It’s a feel-good suggestion, mixed with a creepy mob mentality, that offers no clear path to improvement.

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BoomTown managed to sneak into the green room at the Web 2.0 Summit last night to get a little chit-chat in with Lance Armstrong, the seven-time winner of the Tour de France cycling race title. Armstrong is now probably going for his eighth one, much to the chagrin of France (yes, the whole country, as Armstrong notes in one of the clips in the video below), part of his “comeback” from a three-year retirement. Here’s a video of him talking to me about his health and fitness Web site, Livestrong.com, and some snippets from his onstage interview with Web 2.0’s John Battelle.

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BoomTown is no fan of PowerPoint, but this one by longtime Morgan Stanley analyst Mary Meeker at the Web 2.0 Summit in San Francisco yesterday is made worse by its depressing content.

Meeker, a veteran who was around for the last Web 1.0 meltdown, should know from grim. An inveterate numbers cruncher–I actually met her 15 years ago, while she was crunching a different set of numbers on AOL late into the night at her New York office–she pulls out a lot of tough ones here.

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Inevitably, in the wake of the collapse of the controversial Yahoo-Google search advertising deal, there would come the next shoe to drop–that Microsoft was swooping in with a bid to buy the company and that Yahoo CEO Jerry Yang was on his way out on a rail.

Maybe that should happen, but according to my sources, a report in VentureBeat of this development is dead wrong.

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On Wednesday, the annual Web 2.0 Summit kicks off in San Francisco.

The lineup is particularly good this year and it is also a perfect time to take the temperature of the Internet’s movers and shakers, given all the hubbub of late with the weak economy.

Speakers will include bicycle champ Lance Armstrong, Yahoo CEO Jerry Yang, former VP Al Gore, Google.org head Larry Brilliant, Paul Otellini of Intel and Facebook’s Mark Zuckerberg, among others.

But, best of all for BoomTown, singer Lionel Richie will be performing at a MySpace Music party.

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The ankle-biters have spoken and it seems that I am completely wrong in my estimation in several recent posts where I wrote that Facebook widgets are–how shall we put it delicately?–exceedingly inane.
Why? Apparently because inane is the goal! Well then, I guess: Mission accomplished!

At an appearance at the Web 2.0 Summit yesterday, a group on [...]

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