The Stack Archive

Microsoft shifts loss-making assets to AOL, Uber

Tue 30 Jun 2015

Microsoft has revealed that it is to transfer its display advertising business to AOL as well as handing over some of its mapping technologies to Uber in an effort to refine its online services.

The multinational is looking to refocus on Bing search engine-based advertising, and cut back on costs by simply displaying maps across its Windows devices rather than generating them.

According to the firm, hundreds of display advertising employees would be given the opportunity to move over to AOL.

CEO Satya Nadella has urged that the software giant, which has struggled with profit losses over the past five years, would turn a profit over the next financial year. “Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case search and search advertising and building great content and consumer services,” Microsoft announced in a statement.

The new 10-year partnership will see AOL sell display advertising across MSN, Outlook.com, Skype and Xbox. The deal also outlines that Bing will become the search engine powering online searches on AOL from 2016.

Uber is expected to take over some of the company’s mapping technology , including its imagery unit, a data centre and map data processing business, cameras and intellectual property. A source familiar with the deal confirmed that Uber would offer positions to those employees in that area of the organisation.

Uber will continue to work alongside Google, Baidu and Apple to improve on its mapping services.

Microsoft has also boosted its existing partnership with AppNexus, which manages the online marketplace for online advertising.

Financial details on the new deals have not been disclosed.

Nadella has recently warned staff that “tough choices” will have to be made to rebuild a successful Microsoft. He has not been shy in repeating the need for his company to rein in its peripheral operations.


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