AOL acquires part of Microsoft’s ads business, replaces Google search with Bing
Some sources has revealed that, last week Microsoft’s CEO Satya Nadella has sent an email to Microsoft staff talking about some “tough choices” and now it looks like Microsoft has started implementing these tough decisions. Earlier, Uber has bough the part of Bing Maps’ assets and today Microsoft has revealed that it is selling the part of its ads business to AOL. Microsoft has also revealed that AOL acquires part of the Microsoft’s ads business and from now AOL will control it. Microsoft is also repeatedly cutting job 1200 jobs and the staff will be offered jobs at AOL as well.
Microsoft has mentioned in its official blog that,
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.
Microsoft also revealed that in addition to search partnership, AOL will be the Microsoft’s partner to sell the display formats, including mobile and video across nine markets Brazil, France, Canada, Germany, Italy, Japan, Spain, United Kingdom and United States. From now Bing will now power search and the search ads across AOL portfolio of sites. This is going to be the 10 year agreement which enables the AOL users to access the search results powered by Bing.
Currently Bing is holding 20 percent organic share in the United States and it continues to grow organically as well as through the key partnerships with AOL and others.