Software maker company, Microsoft is shutting down its web display advertising business as CEO Satya Nadella is focusing on three key areas – personal computing, cloud platforms and business productivity. The company is handing operations over to AOL and App Nexus Inc. Financial details of the deal are still undisclosed.
About 1,200 jobs will be impacted due to this change, with some positions could axed or transferred as part of the change. Now, AOL will be responsible for all Microsoft’s display advertising inventory across several platforms including MSN, Outlook.com and Skype, and in nine markets such as U.S., the U.K., Canada, Brazil and France among others. AOL was recently acquired by Verizon in a $4.4 billion all cash deal.
On Monday, Microsoft also confirmed that it will stop collecting its own map data, though it will continue to offer Bing Maps. The company is selling some of its technology to ride-sharing service company and 100 workers will move to Uber.
“Over the past year, we have taken many actions to focus the company’s efforts around our core business strategy,” Microsoft said in a statement to Re/code. “In keeping with these efforts, we will no longer collect mapping imagery ourselves, and instead will continue to partner with premium content and imagery providers for underlying data while concentrating our resources on the core user experience. With this decision, we will transfer many of our imagery acquisition operations to Uber.”Category Business