Facebook is set to launch a new ad unit, Sponsored Stories, that will occupy the third position within a News Feed, either as a small banner-like placement or as a video clip, Media Week reports.

When users click on the ad, the user's entire network of friends is alerted and they can interact with the ad, according to Marketing Vox.

Facebook was recently at the center of a user protest against the launch of its News Feed, which some believed was an invasion of their privacy. Facebook CEO Mark Zuckerberg posted an apology on the Facebook homepage. 

Last week the Wall Street Journal reported that some people close to the talks say that Facebook.com may sell itself to Yahoo for an amount close to $1 billion.