Microsoft transfers map business to Uber and display advertising to AOL
Microsoft is to hand over its display advertising business to AOL and sell some map-generating technology to Uber as it slims down money-losing online operations.
Microsoft is expected instead to focus on its growing search advertising business based on the Bing search engine, and displaying maps on its Windows devices rather than generating the maps themselves.
Microsoft, which employs hundreds of people in its display ad business around the world, said employees would be offered the chance to transfer to AOL.
The world’s largest software company no longer gives results for its online operations, chiefly the MSN web portal and Bing, but they have lost more than $10bn over the past five years. Chief executive Satya Nadella has said Bing will turn a profit next fiscal 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,” said a Microsoft statement.
Under a 10-year deal struck with AOL, now a unit of Verizon Communications, AOL will sell display ads on MSN, Outlook.com, Xbox, Skype and in some apps in major countries. As part of the deal Bing will become the search engine behind web searches on AOL starting next year.
Microsoft also struck a multi-year extension to its existing deal with AppNexus, which provides the tech platform for buyers to purchase online ads.
Microsoft and Uber did not disclose financial terms of their deal, under which Uber will take over the part of Microsoft’s mapping unit that works on imagery acquisition and map data processing. Uber would offer jobs to the 100 or so Microsoft employees working in that area, a source familiar with the deal said.
Uber already uses a combination of map services from Google, Apple and China’s Baidu, and the source said it would continue to do so.
Microsoft said it would no longer collect mapping imagery itself but would continue to work with imagery providers. It already gets much of its map data from Finland’s Nokia.