February 13th, 2008
Microsoft's latest reorg to set the stage for Yahoo merger
In the midst of its acquisition bid for Yahoo, Microsoft is set to announce — most likely on February 14 — its latest company-wide reorg.
According to sources, the still-unprofitable Online Services Business will be where the greatest number of changes will happen. As previously rumored, Online Services Group chief Steve Berkowitz is out. Oversight for the MSN business is moving to Satya Nadella, the current Corporate Vice President of Search and Advertising.
Corporate Vice President of Windows, Bill Veghte, is set to get all of Windows marketing consolidated under him, sources confirmed. Former head of Windows marketing, Mike Sievert, also will be leaving the company, as previously reported.
Post-reorg, Veghte also will have the business and marketing side of both Windows Live and Live Search reporting to him, my sources said. That means not just Windows Live General Manager Brian Hall and his team, but General Manager of Search Product Management and Marketing Brad Goldberg and his team allegedly move under Veghte. (Goldberg just left Windows for Live Search a year ago.)
(If you needed any more evidence that Windows and Windows Live/Live Search will be more closely tied, going forward, this reorg should make that clear….)
For the record, Microsoft, via its Waggener-Edstrom PR agency, declined to comment on anything regarding the alleged reorg.
It sounds from folks with whom I’ve spoken that all of these reorg cogs were already in motion before Microsoft made its bid to buy Yahoo on February 1. So to say that Microsoft made any of these changes in order to make way for the Yahoos is somewhat of a reach.
That said, it’s hard not to play the “what-if” game. CEO Steve Ballmer, the guy who has the ultimate OK on all corporate-reorg-related matters, definitely knew Microsoft was planning to make an offer for Yahoo a couple of months ago (at least). Might Ballmer have been paving the way for Yahoo to become the new development hub for all things Windows Live/Live Search-related? And with no mentions from sources of Brian McAndrews, the former aQuantive CEO and now Vice President of Advertiser and Publisher Solutions, I can’t help but wonder if he’s being kept aside specifically to head a combined Yahoo/Windows Live/Search organization.
On top of that, you can’t help but wonder what Microsoft might do (or hope to do) with some of the stars who were among the 1,000-plus Yahoo employees who were let go this week….
What’s your read on these latest Redmond reorg tea leaves?
Mary Jo has covered the tech industry for more than 20 years. Don't miss a single post. Subscribe via Email or
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