Microsoft shakes up Windows, online businesses; a key player in failed Yahoo bid quits
Microsoft Chief Executive Steve Ballmer is taking direct control over two of the company s most important businesses The news came shortly after reports surfaced that Kevin Johnson a veteran Microsoft executive in charge of a sprawling division that includes both the mainstay Windows business and the company s shakier online efforts was leaving to head network-equipment maker Juniper Networks Johnson was among the Microsoft executives leading the so-far failed pursuit of Yahoo Microsoft was at one time this year willing to pay 47 5 billion to buy the Internet giant in a bid to quickly gain ground on Google in the critical businesses of online search and advertising But its maneuvers during the past half-year helped drive Yahoo into a search-advertising deal with Google Some observers were surprised by Johnson s abrupt departure though Microsoft says the executive will work to ensure a smooth transition At least one company watcher speculated Johnson might be taking the fall for the Yahoo debacle Others saw it as a more normal transition at the top ranks of a company that has gone through a stressful year Debate about whether to buy Yahoo reportedly divided the executive ranks Microsoft s decision to split Johnson s Platforms and Services Division in two and put the pieces under Ballmer fits earlier patterns the company has followed during times of transition Ballmer has often taken direct control of certain business units for a short period of time to keep close watch on them and then turn them over to another leader said Matt Rosoff an analyst at Kirkland-based Directions on Microsoft For example Ballmer took over the small- and midsize-business software unit in 2004 after it turned in one of the company s worst quarterly financial performances In late 1998 before he became CEO Ballmer took charge of the Internet businesses to fill an unexpected vacancy He even moved his office to the part of campus where the group was centered The Platforms and Services Division with more than 14 000 employees will go forward as two separate groups One will include Windows the desktop operating system and Windows Live a suite of online applications such as e-mail and photo-sharing tools that Microsoft is trying to integrate more closely with the operating system A trio of senior vice presidents
