Tuesday, February 19, 2008

Microsoft shakes up online management

JUST as Microsoft appears ready to up the ante in its US$45 billion (A$49.6 billion) unsolicited takeover bid for internet giant Yahoo, the company has shaken up management of its online division.

And reports in the US say the management changes – announced by Microsoft chief executive Steve Ballmer – prepare the ground for a merge with Yahoo.

The company said former aQuantive chief executive Brian McAndrews – who joined Microsoft when the digital advertising firm was acquired last year – will take expanded roles in the Microsoft Online Services division.

Steve Berkowitz will step down as senior vice-president of the Online Services Group. He will remain with the company, focusing on a smooth transition of the business, until the end of August.

Mr Ballmer also announced the promotion of Satya Nadella to senior vice-president Search Portals & Advertising Group, and Bill Veghte to Senior VP of the Online Services and Windows Business Group.

Analysts in the US say the promotion of Mr McAndrews is significant and that he will most like be the top lieutenant in any Microsoft-Yahoo combination

Microsoft responded saying the raft of changes had nothing to do with the Yahoo bid, and that there had been other senior management changes also announced yesterday that were outside of the Online Services Group.

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