Microsoft today announced that the Platforms & Services Division (PSD) will be split into two groups: Windows/Windows Live and Online Services, with both groups reporting directly to CEO Steve Ballmer.
Microsoft also announced that PSD President Kevin Johnson will
be leaving the company. Johnson will work to ensure a smooth
transition. Johnson's departure is the latest hurdle to a
possible transaction between Yahoo and Microsoft, a few days
after the Web company and investor Carl Icahn settled a looming
proxy fight to force Yahoo to strike a deal with Microsoft.
"Kevin has built a supremely talented organization and laid the
foundation for the future success of Windows and our Online
Services Business. This new structure will give us more agility
and focus in two very competitive arenas," Ballmer said. "It
has been a pleasure to work with Kevin, and we wish him well in
As president of Microsoft's largest business division, Kevin
Johnson spearheaded the company's pursuit of Yahoo.
Effective immediately, senior vice presidents Steven Sinofsky,
Jon DeVaan and Bill Veghte will report directly to Ballmer to
lead Windows/Windows Live.
In the Online Services Business, Microsoft will create a new
senior lead position and will conduct a search that will span
internal and external candidates. In the meantime, Senior Vice
President Satya Nadella will continue to lead Microsoft?s
search, MSN and ad platform engineering efforts.
"Our Windows business is firing on all cylinders," Ballmer
said. "We see tremendous opportunity in search and advertising,
and we have a clear strategy for investing in success today and
growth in the future."
"Microsoft is a special place and presents opportunity to so
many," Johnson said. "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."