Of course I have something to say about the news yesterday that AOL would be a key investor in a new early-stage venture fund being started by TechCrunch’s perpetually petulant editor Michael Arrington — with a big, fat and decidedly greasy assist from a panoply of Silicon Valley’s most powerful VC firms and angel investors.

Arrington has previously called me “chief whiner” — oooh, buuuurn, although fair enough, since I have compared him to an egomaniac turtle named Yertle in the past — about my nagging him over the importance of upholding standards of fairness and ethics in journalism.

So as not to let him down, let me begin the whining.

First, my initial reaction when I first heard about the deal: Ugh. Sigh. Hopelessly corrupt. Now 100 percent more icky! A giant, greedy, Silicon Valley pig pile.

I was upset.

By early evening, after my kids told me to chillax, my dark mood had changed to accept that the transaction — however profoundly distasteful to me — was part and parcel of the insidious log-rolling, back-scratching ecosystem that has happened in every other center of power in the universe since the beginning of time.

And so it goes in Silicon Valley.

In fact, the creation of a $20 million investment kitty that Arrington has dubbed CrunchFund is simply the formalization of a long-standing arrangement that has already been going on since he founded his popular tech blog.

That is to say, in which the basic standards of journalism are first warped by calling it newfangled truth-telling and then endlessly corroded by using a wily and unusually aggressive combination of favors and threats to extract, from start-ups and VCs in need of press, both exclusive access and information.

And now, inevitably, money.

This could have been a lot cleaner, of course, by Arrington simply resigning from TechCrunch, becoming a VC and perhaps starting a new blog where his agenda is much clearer, from which he could huff and puff away as he does with much entertaining gusto at real and (mostly) imagined slights.

There is certainly precedent for VCs blogging, including Fred Wilson, Brad Feld and Ben Horowitz. And, despite my criticisms about ethics, it is clear that Arrington is a talented writer whose unique voice would be even stronger if it was truly seen as separate from what has become a news organization.

But because of his obvious need to be the center of attention — requiring the ermine kingmaker mantle and foisting his patented I’m-here-to-tell-it-like-it-is attitude on us all — that appears to be impossible.

(By the way, I await Arrington’s usual inane rant about the fictional conflicts of interest related to my gay Google marriage anytime now in 3 … 2 … 1, always and purposefully leaving out the pertinent facts that I can only wed one person, get no financial benefit and am also a prominent critic of the scary search behemoth, while he can make a badillion questionable and grossly tangled investments.)

Personal annoyances aside, what’s most interesting here is the group of Silicon Valley power players who lined up to bow and scrape and then hand over a small pile of dough to the blogger who would be king.

They include: Sequoia Capital, Redpoint Ventures, Kleiner Perkins, Greylock Partners, Austin Ventures and Accel Partners, as well as individual investments from partners at Benchmark Capital and Andreessen Horowitz, entrepreneur Kevin Rose and DST Global’s Yuri Milner. And, of course, the inevitable Arrington BFF Ron Conway.

Holy googa mooga, that would be, well, everyone, except Ashton Kutcher and Justin Timberlake (who will surely appear soon enough).

As one person also pointed out to me, I don’t recall this many competing VCs investing in one company, let alone another venture fund.

It goes without saying that the reasons they all decided to jump in this fetid pool with abandon are quite varied, if all entirely compromised.

One investor told me — off the record, naturally — that he thought it would be an interesting experiment to see what happened and so he wanted in, especially since everyone else was doing it.

Another well-known VC said that there is no downside to being financially affiliated, especially in attracting talent to its start-ups, with Arrington and, by extension, TechCrunch.

The well-respected Reid Hoffman of Greylock was the only one brave enough to talk on the record, explaining the reasoning pretty clearly:

“Techcrunch will get some real deal flow from entrepreneurs that we would otherwise not see, because they have established a prominent position as the SV/Tech industry information feed. As many tech entrepreneurs read it — both within Silicon Valley and globally — and view the information news feed to be their target for announcing themselves to the world, Crunchfund will have access to deal flow to these diverse and early stage companies. Some of these companies will be the kind of early stage companies with billion-dollar potential that Greylock invests in.”

There you have it: No one can afford to be out of the deal flow in these times, even if it means cutting corners.

While TechCrunch’s owner, AOL, said Arrington will no longer be managing editor, with only writing duties at the site he dominates and with no editorial control, Hoffman’s use of TechCrunch for CrunchFund was accurate, because in the eyes of many they are interchangeable.

That’s due to the fact that Arrington still breaks or is clearly the source for important stories on the site and, more importantly, is the big swinging dude who attracts all the eager entrepreneurs to the party. He is the fulcrum of that site, even as it has grown.

And so it will remain, I am guessing, no matter how much AOL insists it will not be so, because the easy questions pile up quickly:

Will Arrington keep doing what are clearly news stories, for example, even though he protesteth too much — as he did in the New York Times yesterday — that he is not a journalist?

And, if so, is it right for him to do so given his insider status, creating a nonparity of sourcing and crystal clear conflicts of interest?

Most of all, can he resist his palpable love of news-breaking and scoops, even if he gets them in ever more unseemly ways?

As if to make it all pretty, Arrington told reporters yesterday that he has put a clause in his limited partnership agreement so he can report on anything he likes, and in any way, about his investors and their companies, however confidential, except those he invests in.

O joyous day! Freedom of the press is preserved and our sacred First Amendment can breathe a sigh of relief, now that it is enshrined in an unholy blogger-VC LP agreement.

After pausing for a moment so that Thomas Jefferson and Edward R. Murrow can stop spinning in their graves, you can go down this road for many increasingly bumpy miles, which only becomes more twisted and confusing as it continues.

I finally talked to one investor in CrunchFund, who said simply and honestly: “It’s not that much money, so who cares?”

Indeed, who does care anymore about crossing what had long been very bright lines in journalism and, if you want to get all cosmic, in life?

Obviously, most of all, not AOL, or its CEO Tim Armstrong, or its head of content, Arianna Huffington. The pair, for whatever reason, decided to make a startling exception for Arrington from a rule that explicitly bars reporters at its media units from investing in the companies they cover.

That happened after he recently did a complete 180 from a previous decision to stop investing and jumped right back in, leaving Armstrong and Huffington to clean up the ethical mess.

They only made it worse, with their decision to throw journalism under the bus by letting Arrington do as he pleased, while touting how important it was for other content sites at AOL to remain more pure.

In the spirit of full disclosure, these kinds of ethical lapses are endemic these days in journalism. Case in point: The appalling phone-hacking controversy taking place at News Corp.’s News International unit in Britain.

While I cannot speak for Dow Jones, I can say that the behavior in another News Corp. property certainly takes its toll on those who adhere to higher standards at the company, especially when it comes to morale.

Thus, I can imagine how others feel at AOL — including those you-know-who-you-are silent ones at TechCrunch — who can’t and, more to the point, wouldn’t make the deals Arrington has been allowed to get away with.

It is not a good feeling, I can assure you.

And, while I have not spoken to her about it, I’d imagine that Huffington cannot be thrilled to be pushing for better journalism at AOL and trying to burnish her cred by hiring some top reporters, while also having to deal with this.

That’s okay, because Armstrong was perfectly willing to do the awkward pretzel-twist needed to explain away the controversial situation, also in an interview with the Times:

“TechCrunch is a different property and they have different standards. We have a traditional understanding of journalism with the exception of TechCrunch, which is different but is transparent about it.”

In this case, Tim, I am sorry to inform you that transparency is a complete canard and is more likely to end up covering up a lot more transgressions than it ever will reveal.

And, essentially and lazily sloughing it off by saying, “That’s just Mike being Mike,” is not going to cut it, at least not with me.

Not that any amount of tsk-tsking about it matters, I suppose, as Arrington finally gets his fervent Pinocchio-on-a-star wish to be a real-boy VC, can add yet another tainted buck to the pile of billions his venture pals already have, and just call it another typical day in Silicon Valley.

Still, when you are the designated whiner-in-chief, it is pretty much all one can do.

More interesting: Wouldn’t it be weird if the President of the United States gave a speech about the education gap, made a passing reference to technology’s ability to distract us, and then the short-attention-span media made it look like he was coming for your Twitter account?

Not weird, you say? Just kind of predictable?

Okay. So here, for the record, are Obama’s prepared remarks for his commencement address at Hampton University yesterday (below). They clock in at more than 2,000 words (the speech he actually delivered was a tiny bit longer), but if you slug your way through it, you’ll find that your iPad is probably safe.

Don’t like to read? No problem–you can also watch the 22-minute speech. The White House posted it on its Web site last night.

Good morning, Happy Mother’s Day to all the moms here today, and thank you for inviting me to share this special occasion with the Hampton community. Before we get started, I just want to say, I’m excited the Battle of the Real H.U. will be taking place in Washington this year. You all know I’m not going to pick sides. But it’s been, what, 13 years since the Pirates lost. As one Hampton alum on my staff put it, the last time Howard beat Hampton, The Fugees were still together.

Let me also say a word to President Harvey, a president who bleeds Hampton blue. In a single generation, Hampton has transformed from a small black college into a world-class research institution. That transformation has come through the efforts of many people, but it has come through President Harvey’s efforts, in particular, and I want to commend him for his leadership.

I also want to recognize the Board of Trustees, faculty, alums, family, and friends with us today. And most importantly, I want to congratulate all of you, the Class of 2010–I take it none of you walked across Ogden Circle.

We meet here today, as graduating classes have met for generations, not far from where it all began, near that old oak tree off Emancipation Drive. I know my University 101. There, beneath its branches, by what was then a Union garrison, about twenty students gathered on September 17, 1861. Taught by a free citizen, in defiance of Virginia law, the students were escaped slaves from nearby plantations, who had fled to the fort seeking asylum.

After the war’s end, a retired Union general sought to enshrine that legacy of learning. With collections from church groups, Civil War veterans, and a choir that toured Europe, Hampton Normal and Agricultural Institute was founded here, by the Chesapeake–a home by the sea.

That story is no doubt familiar to many of you. But it is worth reflecting on why it happened; why so many people went to such trouble to found Hampton and all our Historically Black Colleges and Universities. The founders of these institutions knew, of course, that inequality would persist long into the future. They recognized that barriers in our laws, and in our hearts, wouldn’t vanish overnight.

But they also recognized a larger truth; a distinctly American truth. They recognized that with the right education, those barriers might be overcome and our God-given potential might be fulfilled. They recognized, as Frederick Douglass once put it, that “education…means emancipation.” They recognized that education is how America and its people might fulfill our promise. That recognition, that truth–that an education can fortify us to rise above any barriers, to meet any tests–is reflected, again and again, throughout our history.

In the midst of civil war, we set aside land grants for schools like Hampton to teach farmers and factory-workers the skills of an industrializing nation. At the close of World War II, we made it possible for returning GIs to attend college, building and broadening our great middle class. At the Cold War’s dawn, we set up Area Studies Centers on our campuses to prepare graduates to understand and address the global threats of a nuclear age.

Education, then, is what has always allowed us to meet the challenges of a changing world. And that has never been more true than it is today. You’re graduating in a time of great difficulty for America and the world. You’re entering the job market, in an era of heightened international competition, with an economy that’s still rebounding from the worst crisis since the Great Depression. You’re accepting your degrees as America wages two wars–wars that many in your generation have been fighting.

Meanwhile, you’re coming of age in a 24/7 media environment that bombards us with all kinds of content and exposes us to all kinds of arguments, some of which don’t rank all that high on the truth meter. With iPods and iPads; Xboxes and PlayStations; information becomes a distraction, a diversion, a form of entertainment, rather than a tool of empowerment. All of this is not only putting new pressures on you; it is putting new pressures on our country and on our democracy.

It’s a period of breathtaking change, like few others in our history. We can’t stop these changes, but we can adapt to them. And education is what can allow us to do so. It can fortify you, as it did earlier generations, to meet the tests of your own time.

First and foremost, your education can fortify you against the uncertainties of a 21st century economy. In the 19th century, folks could get by with a few basic skills, whether they learned them in a school like Hampton, or picked them up along the way. For much of the 20th century, a high school diploma was a ticket to a solid middle class life. That is no longer the case.

Jobs today often require at least a bachelor’s degree, and that degree is even more important in tough times like these. In fact, the unemployment rate for folks who’ve never gone to college is over twice as high as it is for folks with a college degree or more

The good news is, all of you are ahead of the curve. All those checks you wrote to Hampton will pay off. You are in a strong position to outcompete workers around the world. But I don’t have to tell you that too many folks back home aren’t as well prepared. By any number of different yardsticks, African Americans are being outperformed by their white classmates, and so are Hispanic Americans. And students in well-off areas are outperforming students in poorer rural or urban communities, no matter what color their skin.

Globally, it’s not even close. In 8th grade science and math, for example, American students are ranked about 10th overall compared to top-performing countries. African Americans, however, are ranked behind more than twenty nations, lower than nearly every other developed country.

All of us have a responsibility, as Americans, to change this; to offer every child in this country an education that will make them competitive in our knowledge economy. But all of you have a separate responsibility, as well. To be role models for your brothers and sisters. To be mentors in your communities. And, when the time comes, to pass that sense of an education’s value down to your children. To pass down that sense of personal responsibility and self-respect. To pass down the work ethic that made it possible for you to be here today.

So, allowing you to compete in the global economy is the first way your education can prepare you. But it can also prepare you as citizens. With so many voices clamoring for attention on blogs, on cable, on talk radio, it can be difficult, at times, to sift through it all; to know what to believe; to figure out who’s telling the truth and who’s not. Let’s face it, even some of the craziest claims can quickly gain traction. I’ve had some experience with that myself.

Fortunately, you’ll be well positioned to navigate this terrain. Your education has honed your research abilities, sharpened your analytical powers, and given you a context for understanding the world. Those skills will come in handy.

But the goal was always to teach you something more. Over the past four years, you’ve argued both sides of a debate. You’ve read novels and histories that take different cuts at life. You’ve discovered interests you didn’t know you had, and made friends who didn’t grow up the same way you did. And you’ve tried things you’d never done before, including some things I’m sure you wish you hadn’t.

All of it, I hope, has had the effect of opening your minds; of helping you understand what it’s like to walk in someone else’s shoes. But now that your minds have been opened, it’s up to you to keep them that way. And it will be up to you to open minds that remain closed. That, after all, is the elemental test of any democracy: whether people with differing points of view can learn from each other, work with each other, and find a way forward together.

I’d also add one further observation. Just as your education can fortify you, it can also fortify our nation, as a whole. More and more, America’s economic preeminence, our ability to outcompete other countries, will be shaped not just in our boardrooms and on our factory floors, but in our classrooms, our schools, and at universities like Hampton; by how well all of us, and especially us parents, educate our sons and daughters.

What’s at stake is more than our ability to outcompete other nations. It’s our ability to make democracy work in our own nation. Years after he left office, decades after he penned the Declaration, Thomas Jefferson sat down, a few hours’ drive from here, in Monticello, to write a letter to a longtime legislator, urging him to do more on education. Jefferson gave one principal reason–the one, perhaps, he found most compelling. “If a nation expects to be ignorant and free,” he wrote, “it expects what never was and never will be.”

What Jefferson recognized, like the rest of that gifted generation, was that in the long run, their improbable experiment–America–wouldn’t work if its citizens were uninformed, if its citizens were apathetic, if its citizens checked out, and left democracy to those who didn’t have their best interests at heart. It could only work if each of us stayed informed and engaged; if we held our government accountable; if we fulfilled the obligations of citizenship.

The success of their experiment, they understood, depended on the participation of its people–the participation of Americans like all of you. The participation of all those who’ve ever sought to perfect our union. Americans like Dorothy Height.

As you probably know, Dr. Height passed away the other week at the age of 98. Having been on the firing line for every fight from lynching to desegregation to the battle for health care reform, she lived a singular life. But she started out just like you, understanding that to make something of herself, she needed a college degree.

So, she applied to Barnard–and got in. Only, when she showed up, they discovered she wasn’t white like they’d thought. You see, their two slots for African Americans had already been filled. But Dr. Height was not discouraged. She was not deterred. She stood up, straight-backed, and with Barnard’s acceptance letter in hand, marched down to NYU, where she was admitted right away.

Think about that for a moment. A woman, a black woman, in 1929, refusing to be denied her dream of a college degree. Refusing to be denied her rights. Her dignity. Her piece of America’s promise. Refusing to let any barriers of injustice or inequality stand in her way. That refusal to accept a lesser fate; that insistence on a better life is, ultimately, the secret of America’s success.

So, yes, an education can fortify us to meet the tests of our economy, the tests of citizenship, and the tests of our time. But what makes us American is something that can’t be taught–a stubborn insistence on pursuing a dream.

The same insistence that led a band of patriots to overthrow an empire. That fired the passions of union troops to free the slaves and union veterans to found schools like Hampton. That led foot-soldiers the same age as you to brave fire-hoses on the streets of Birmingham and billy clubs on a bridge in Selma. That led generation after generation of Americans to toil away, quietly, without complaint, in the hopes of a better life for their children and grandchildren.

That is what has makes us who we are. A dream of brighter days ahead, a faith in things unseen, a belief that here, in this country, we’re the authors of our own destinies. And it now falls to you, the Class of 2010, to write the next great chapter in America’s story; to meet the tests of your own time; and to take up the ongoing work of fulfilling our founding promise. Thank you, God Bless You, and may God Bless the United States of America.

Yahoo announced tonight that it is dramatically expanding its relationship with Twitter, integrating it broadly through its Web site, much in the same way it did recently with Facebook.

In December, Yahoo (YHOO) announced that it would integrate Facebook Connect with its many properties–from its powerful media sites to its Flickr photo service to its email.

While the Internet giant once had grand plans to socialize itself, it seems that task is being outsourced to more successful and innovative companies in the social networking space, part of a massive integration of them across the giant Internet portal, in an effort dubbed internally as “Project Rushmore.”

So, as it previously indicated, Yahoo is now moving beyond Facebook, weaving Twitter’s real-time feed throughout the service in a variety of ways.

Under terms of the deal, users can access the microblogging service’s data stream while on Yahoo, make status updates and share Yahoo content.

In addition, Yahoo said that search and media properties “like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics.”

Yahoo once again declined to comment on whether and when the service would be striking similar deals with other social networking sites.

But sources told me that MySpace and LinkedIn are likely candidates for the next two spots on Yahoo’s social monument.

That would, of course, account for the four presidential stone faces on Mount Rushmore–George Washington, Teddy Roosevelt, Thomas Jefferson and Abraham Lincoln.

No money was exchanged in the five-year deal with Facebook; nor was there any other financial or advertising element. Yahoo declined to give such details about the Twitter deal, but some sort of payment seems likely.

Whatever the case, other big Internet companies are getting into the social act.

Separately, both software behemoth Microsoft (MSFT) and search giant Google (GOOG) recently struck a data-mining deal with Twitter, and Microsoft did so with Facebook.

Yahoo’s deals are broader, because such an overall move by the company is an important and necessary one.

It is also very late in coming, since Yahoo nearly completely missed the social networking train and needs to figure out how to be part of it in a way that is useful to users, as well as open.

Here is the full press release from Yahoo, with more bird puns than BoomTown can stand (Sheila, I give):

@yahoo + @twitter Sitting in a Tree…T.W.E.E.T.I.N.G.

Yahoo! gives ‘em something to tweet about, partnering with Twitter to integrate content and social experiences from across the Web

SUNNYVALE, Calif., Feb. 23, 2010–As part of its ongoing commitment to be the center of people’s online lives, Yahoo Inc. (NASDAQ:YHOO) today announced a global partnership with Twitter to integrate Twitter’s real-time social experiences with more than 600 million people in Yahoo!’s global network. The integration is part of Yahoo!’s commitment to provide personally relevant information to people, from sources across the Web.

A little bird told me: @yahoo is the place to tweet and be tweeted

This partnership includes three primary elements:

1) People will be able to access their personal Twitter feeds across Yahoo!’s many products and properties, including the homepage, Yahoo! Mail, Yahoo! Sports, and others, letting them check in more easily on what’s happening with the people and things they care about while on Yahoo!.

2) People will be able to update their Twitter status and share content from Yahoo! in their Twitter stream, so they can easily share their Yahoo! experiences with their friends and followers on Twitter.

3) Yahoo! Search and Yahoo! media properties like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics. Yahoo! Search users will immediately see real-time Twitter results today; go to Yahoo! and try it out.

Tweet and shout: @yahoo pumps up the social volume

Today’s Twitter partnership, along with Yahoo!’s recently announced Facebook relationship, will transform Yahoo! into a highly customizable social experience that lets people bring together and unify their activity from their many social experiences across the Web. Because of these connections, anyone with a Yahoo! ID can update multiple social networks simultaneously and stay in touch with the people and information that matter most at every moment of the day.

“Let me try to capture the enormity of this integration in 140 characters or less: We’re turning the key to the online social universe–you will find the most personally relevant experiences through Yahoo!,” said Bryan Lamkin, senior vice president, consumer products group, Yahoo!. “We’re also simplifying people’s lives by bringing their social worlds–and the world–together for easy access.”

Add an exclamation point to your tweets

The Twitter integration also provides full access to the complete Twitter public data stream, which Yahoo! will use to improve the relevance and freshness of content across Yahoo! properties. This will drive deeper user engagement, and create new and compelling opportunities for developers, advertisers, and publishers.

“The information in one single tweet can travel light-years farther with this Yahoo! integration,” said Twitter cofounder Biz Stone. “Tweets in more places brings relevance where and when you need it most.”

The real-time Search integration is available immediately. Other parts of the integration are expected to launch later this year.

A few weeks ago, several sources at Yahoo begin telling BoomTown about a mysterious “Project Rushmore,” which was described as a massive integration of major social networking sites across the giant Internet portal.

Now, the first unveiling of Project Rushmore comes with this morning’s announcement that Yahoo (YHOO) will be integrating Facebook Connect with its many properties–from its powerful media sites to its Flickr photo service to its email.

Once deployed–in the first half of next year, said Yahoo–Yahoo users can monitor their full Facebook feed on the site and Facebook users will have their Yahoo activity displayed on their news feed, if they choose to.

The companies said no money will be exchanged in the five-year deal; nor will there be any other financial or advertising element.

This is a major step for Yahoo, which has long touted its openness, and a significant upgrade to the company’s relationship with Facebook.

It’s also more than ironic, as Yahoo had been very close to acquiring Facebook for just over $1 billion several years ago, in a should-have deal that went south.

Currently, Facebook users can update their status and access their stream via an app on the Yahoo homepage. They can also share to Facebook using buttons on Yahoo, and Facebook can access contacts on Yahoo.

But the relationship between the pair–which have some of the largest audiences on the Web between them–has been relatively thin until now.

This has been a glaring problem for Yahoo, which has also promised a lot of socialization throughout the service, but has not really provided it for users. The company hopes this tight link with the fast-growing Facebook will send users back to Yahoo.

Facebook–via Facebook Connect, which allows users to log on to participating sites with their identity on the service–is perhaps the bigger winner here.

The huge amount of data from the activities from one of the most trafficked sites on the Web–with upward of 500 million users–will further solidify its growing role as a central hub of a user’s Web life.

Another irony: This was the role Yahoo held for many years and has been losing to, yes, Facebook.

Yahoo is still aiming to be the central hub for a lot of people too, said Jim Stoneham, Yahoo’s VP of Communities, who noted that slightly more than half of Yahoo users also have Facebook accounts.

“That’s highly relevant that a lot of people use both,” said Stoneham. “So, there should be a strong bond across both sites.”

Added Stoneham: “This will be a done on a deep level into Yahoo.”

Stoneheam declined to comment on whether and when the service would be striking similar deals with other networking sites.

But sources told me that Twitter and LinkedIn are likely candidates, as well as MySpace.

That would, of course, account for the four presidential stone faces on Mount Rushmore–George Washington, Teddy Roosevelt, Thomas Jefferson and Abraham Lincoln.

Other big Internet companies are getting into the social act. Separately, both Microsoft (MSFT) and Google (GOOG) recently struck a data-mining deal with Twitter and Microsoft also did so with Facebook.

So, such an overall move by Yahoo is an important and necessary one–and also very late in coming–since it completely missed the social networking train and needs to figure out how to be part of it in a way that is useful to users and open.

“This relationship pushes us really far forward [toward openness],” said Cody Simms, senior director of product management for Yahoo’s open strategy. “And it helps our users be more social, which they want to be wherever they are.”

And presumably, Yahoo hopes these moves will keep users on Yahoo a little longer while doing that.

Here is the full blog post from Yahoo’s Yodel Anecdotal by Stoneham:

Update once to share with many on Yahoo! and Facebook

Posted December 2nd, 2009 at 6:29 am by Lucas Mast, Blog Editor

We have good news to share with everyone who uses Yahoo! and Facebook–in the first half of 2010 we will open the door between two of the Internet’s largest online communities. You will be able to see your Facebook friends’ activities on Yahoo! and share Yahoo! content–ratings, photos, article comments, and more–directly on your Facebook stream. We’re doing this by deeply integrating a service called Facebook Connect across Yahoo! properties worldwide, which we announced today.

As the place where over 500 million people visit every month, Yahoo!’s goal is to bring together social experiences from across the web, and provide one place for people to access information and stay in touch with the people they care about most.

Yahoo!’s integration of Facebook Connect will provide you with richer experiences across the Yahoo! products you use every day, such as Yahoo! Mail, Yahoo! News, Yahoo! Answers and Yahoo! Sports. In the future, you’ll be able to choose where you want to update your status message–from destinations across Yahoo!–or directly on Facebook.

We are doing this as part of our commitment to deliver more personally relevant Internet experiences, so watch for more details in the New Year!

Jim Stoneham, VP of Communities for Yahoo!

And, if you are a glutton for punishment, here’s the full press release from Yahoo:

Yahoo! Extends Facebook Integration to Bring Together Social Experiences From Across the Web

SUNNYVALE, Calif., Dec. 2, 2009–Continuing its commitment to be the center of people’s online lives, Yahoo! Inc. (NASDAQ: YHOO) today announced further integration with Facebook that unites social experiences from across the Web to provide a place for consumers to enjoy meaningful content and stay in touch with the people they care about most.

“With this integration, we are opening the door for two of the Internet’s largest online communities to make it easier for people to stay connected,” said Jim Stoneham, vice president of Communities for Yahoo!. “It also enables us to further the Yahoo! Open Strategy, which is aimed at making experiences dramatically more open, social and personally relevant for the more than 500 million people that visit Yahoo! each month.”

Yahoo!’s Facebook Connect integration will give consumers richer experiences on Yahoo!, including in Yahoo! Mail and on properties like Yahoo! News, Yahoo! Sports, and Yahoo! Finance. It will enable them to connect with Facebook friends on Yahoo!, view a feed of their friends’ related activity on Yahoo!, and share content–such as photos from Flickr or comments on news stories–with all of their friends on Facebook. The content that consumers share with Facebook friends will then create a loop that drives visitors back to Yahoo!.

This partnership extends the current Facebook integration on Yahoo! which enables Facebook users to access their stream and update their status from the Yahoo! homepage, provides “Share on Facebook” options across the Yahoo! network, and allows Facebook to access Yahoo! Contacts. People using both Yahoo! and Facebook will soon be able to share updates across both networks, creating a richer and more relevant social experience by connecting the broad range of Yahoo! content and services with their friends on Facebook.

“As one of the largest sites on the Web, Yahoo! is an ideal partner to integrate with Facebook Connect, enabling users to share meaningful content with their friends on Facebook from Yahoo’s wide range of category-leading properties,” said Ethan Beard, director of Facebook Developer Network.

The integration is expected to begin in the first half of 2010.

[Photo credit: Dean Franklin under the Creative Commons attribution license.

Thanks to John Cook, who used to work for the PI but left last year to cofound TechFlash, which covers Seattle-area business news, for pointing this one out.