Facebook Integration Now Live on the New Yahoo Home Page (Screenshots)

In what is surely the biggest Facebook Connect launch to date, a significant Facebook integration has just been rolled out as part of the new Yahoo home page which went live today. Now, Facebook users can see and publish to their Facebook stream – right from the Yahoo home page.

Here’s how it looks:

As you can see, Facebook users are now able to access their full News Feed, profile stream, friend list, and events and birthdays, just by hovering over the Facebook tab on the left side of the new Yahoo home page.

Interestingly, Yahoo is also pairing the Facebook integration with a Yahoo ad, sitting just to the right of the Facebook stream. Now, Yahoo is not only able to keep the user on its site longer, but it’s also monetizing that engagement through its own ad network.

Overall, the new integration looks great. Yahoo is looking for ways to keep users engaged on Yahoo.com more, and Facebook is looking to increase distribution of its communication infrastructure across the web.

However, each company is also sacrificing something as part of the partnership. For Yahoo, users are moving to Facebook to share information with friends instead of doing so through Yahoo Mail, Yahoo Messenger, or Yahoo Apps. For Facebook, Yahoo now has significant influence over the Facebook user experience.

Stream syndication deals are becoming more common for Facebook, and we expect that to continue. Earlier this year, it launched an integration with Windows Live, as part of a broader partnership with Microsoft. Integrating Facebook Connect throughout the web is a crucial part of Facebook’s overall strategy to become the most trusted identity and communication platform anywhere.

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