Just last week, Microsoft’s CEO Satya Nadella sent out an email to Microsoft staff talking about some “tough choices”. Now, as it seems like, Microsoft has started making these tough decisions. Earlier today, the company sold part of Bing Maps’ assets to Uber. And the company just revealed that it’s selling part of its ad business to AOL. Microsoft revealed that AOL will now be controlling Microsoft’s advertising business. It’s also worth mentioning that Microsoft is reportedly cutting 1,200 jobs and the staff are being offered at AOL as well.
Microsoft and AOL share a commitment to customer service and collaboration, and together we will create a powerhouse media offering with a remarkable set of differentiated assets. By introducing one selling motion across AOL’s world class portfolio of sites, such as Huffington Post, Engadget, Adap.tv and TechCrunch and Microsoft’s much-loved consumer services, including MSN, Xbox, Outlook.com, and Skype, we are uniquely positioned to deliver more scale of premium inventory and target audiences across display, video and mobile. Our advertising customers will have one consistent experience as we transition our sales and trade marketing employees in these nine markets to AOL, subject to compliance with local law and employee consultation obligations.
This wasn’t really the big news, however. Microsoft announced that AOL will be replacing Google Search with Bing Search for the next 10 years. This is indeed a pretty big news for the search engine and Microsoft as well.