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Update: *Microsoft* has confirmed Lu’s appointment in an official release. Lu will start January 5, and report directly to CEO Steve Ballmer…

imageUpdate: *Microsoft* has confirmed Lu’s appointment in an official release. Lu will start January 5, and report directly to CEO Steve Ballmer. He will oversee a trio of execs — but not all of the names initially thought: Nadella, Mehdi and Scott Howe, who has been promoted to SVP of MSFT’s Advertiser & Publisher Solutions group. Former aQuantive CEO Brian McAndrews previously held that title, but he’ll be transitioning out — and leaving MSFT — over the next several months.

Microsoft’s quest to find a digital head will end in a rather technical choice: former *Yahoo* EVP of engineering for Search and Ad Tech Qi Lu, according to Kara. The final details of his contract are being ironed out, and could be announced by next week, the story says. This position has been vacant since Kevin Johnson left and joined Juniper.

The logic for hiring Lu: since a lot of Microsoft

  1. Sid Parakh, a McAdams Wright Ragen analyst, said the collection of former Yahoo search talent at Microsoft could suggest the company has shifted back to a strategy of build rather than buy.

    "Google is the technology leader in the industry, and to catch up with them there is clearly a lot of technology development that Microsoft is undertaking at this point," he said.

    Qi Lu is a 47-year-old computer scientist, he left Yahoo in August after spending 10 years with yahoo.

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