Microsoft (NASDAQ: MSFT) is sick of losing money at its online unit. It has replaced the head of the operation, Steve Berkowitz, with the head of the aQuantive ad company that the software company bought last year. Brian McAndrews will take over all responsibilities for the unit as it prepares to possibly merge with Yahoo! (NASDAQ: YHOO).
According to Reuters, "McAndrews will likely be in a top leadership position in the combined Microsoft-Yahoo, should the Web pioneer accept Microsoft's $41.8 billion buyout offer."
It is telling that an ad executive, who did not begin his career in Redmond, will take over. Microsoft hopes that an outsider may win over employees from Yahoo! if that deal goes though. There is bitterness between Yahoo! and current Microsoft staff after years of fighting one another.
But that action could be short-sighted. Programmers and management from within Microsoft's online operation may feel that Yahoo! is being treated with kid gloves. The executives and programmers at Microsoft's unit have spent years trying to turn it around.
Now they get to play second fiddle.
Douglas A. McIntyre is an editor at 247wallst.com.
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