Microsoft spins out new search and advertising group

With its market share in search and advertising lagging and key execs soon to leave, Microsoft took action last week, spinning a new Search and Ad Platform Group out of Windows Live.

The new group will be headed by Satya Nadella, formerly VP of Microsoft's Dynamics business apps line, and will report to Kevin Johnson, president of the Platforms and Services Division.

Microsoft is putting more emphasis on search and advertising by giving them one boss and one R&D leader, says Adam Sohn, Microsoft's director of global sales and marketing. It's a signal that search and advertising will play a role across Microsoft's product portfolio. Interestingly, though, Windows Search--the version bundled with the operating system--stays in the Windows Group.

The changes come as Christopher Payne, VP of Windows Live Search, and Blake Irving, VP of the Windows Live Platform Group, prepare to leave the company.

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