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Microsoft Reorgs After Key Exec Bolts

Kevin Johnson, a key player in the failed Microsoft-Yahoo talks, bolted this afternoon to Jupiter Networks as CEO

Microsoft CEO Steve Ballmer is now running the company’s Windows, Windows Live and Internet properties after Kevin Johnson, the president of the company’s Platforms and Services Division (PSD) and a key player in the failed Microsoft-Yahoo talks, bolted to Jupiter Networks, where he will be CEO.

Microsoft said PSD would be split into two groups, Windows/Windows Live and Online Services, both reporting to Ballmer.

In a prepared statement Ballmer, who wished Johnson well, said the “new structure will give us more agility and focus in two very competitive arenas.”

The Wall Street Journal’s All Things Digital blog recently listed Johnson as a potential replacement for Yahoo CEO Jerry Yang sans Microsoft. He would have run Yahoo if Microsoft had been able to pull off the acquisition.

Microsoft said senior VPs Steven Sinofsky, Jon DeVaan and Bill Veghte would handle the Windows/Windows Live units under Ballmer.

The company will start searching for somebody to run the Online Services business.

Meantime, SVP Satya Nadella will continue to lead Microsoft’s search, MSN and ad platform engineering efforts and SVP Brian McAndrews will continue to lead its Advertiser & Publisher Solutions Group (APS), focusing on display advertising and integrating recent acquisitions such as Massive Inc, Navic Networks, ScreenTonic SA and YaData Ltd.

According to Ballmer, “Our Windows business is firing on all cylinders. We see tremendous opportunity in search and advertising, and we have a clear strategy for investing in success today and growth in the future.”

Unusually Johnson was given space in the press release to say “Microsoft is a special place and presents opportunity to so many. I have been so fortunate to have experienced 16 amazing years of building Microsoft’s business, learning from great leaders in the company and working with phenomenally talented people.”

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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MS News Desk 07/23/08 09:45:46 PM EDT

Microsoft CEO Steve Ballmer is now running the company's Windows, Windows Live and Internet properties after Kevin Johnson, the president of the company's Platforms and Services Division (PSD) and a key player in the failed Microsoft-Yahoo talks, bolted this afternoon to Jupiter Networks, where he will be CEO. Microsoft said PSD would be split into two groups, Windows/Windows Live and Online Services, both reporting to Ballmer.

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