Blog Post

Microsoft Realigns MSN Into Two Divisions

This is a curious move from MSN: it is splitting into two units, one to take control of Web communications while the other develops its information portal and targets growth in areas such as search technology and music services…

The information unit, which will be headed by Yusuf Mehdi — a longtime Microsoft executive known for his work on Internet Explorer — will include the MSN portal, its emerging search service, e-commerce sites, and entertainment and other services.

The communications division, which will be headed by Blake Irving, will focus on growing MSN’s communication-focused products, such as its subscription MSN service, Hotmail, MSN Messenger, and its Passport identity service.

MSN, which reached profitability on an operating basis for the first time in the latest quarter, grew into something of a mishmash of software and services managing everything from dial-up access, a Web portal and Hotmail to the MSN Messenger IM.

Related:

MSN Revenues Grow 15 Percent in Q3, 03

MSN Launches Video Service

MSN Shuts Down Its Chatrooms

Microsoft To Debut MSN Premium

MSN UK’s Premium Sevices Uptake Slow; Management Shakeout Coming

MSN Boss Talks Expansion; Preparing Premium Version