Ex- Yahoo executive to run Microsoft Internet Unit

San Francisco, December 4: Microsoft chooses Qi Lu, a former Yahoo executive for the chief of its struggling internet unit. Qi Lu would replace Kevin Johnson, who left Microsoft in July, soon after the company failed to takeover Yahoo. He was in charge of windows division and was a general business manager.

In addition, Brian McAndrews, head of the Microsoft advertiser and publisher solution group, follows Johnson to be the next to leave the company. According to Microsoft, Scott Howe will take over his position.

Qi Lu, a computer scientist with a PhD has a deep technical knowledge and even more advertising and media experience. He was a former researcher at IBM’s Almaden Research Center and Carnegie Mellon University. He also had been an executive vice president in two important areas like online search and advertising technology. He has served in Yahoo for around ten years.

Lu said in a statement, "I am genuinely excited about the opportunities ahead for Microsoft to make an enormous impact on the online industry".

He would now serve as the president of the loss making online services group and will lead the company’s objective to take on Google, which rules the market in online search advertising and graphical display advertising.

Steven A. Ballmer, Microsoft’s chief executive, said, "Dr. Lu’s deep technical expertise, leadership capabilities and hard-working mentality are well known in the technology industry". He further said that Microsoft is no more interested to take over Yahoo but would like to make partnership with advertising companies.

However, the appointment of former Yahoo executive has sparked a wave of speculation about Microsoft’s interest in acquiring Yahoo. Last month too, Microsoft had hired a Yahoo search executive, Sean Suchter for its Silicon Valley search technology group.

Youssef Squali, an analyst with Jefferies & Company said,"if Microsoft and Yahoo struck a search deal, Mr. Lu’s knowledge of Yahoo’s operations could be important to Microsoft. It will make the prospects of any integration that much easier".

Lu has a challenging business to face ahead, as Microsoft has dropped to the third rank in the United States online search business. According to data from comScore Inc., Microsoft holds 8.5 percent, Yahoo 20.5percent and Google holds 63.1 percent of the United States online search business.

Yahoo remains ahead of Microsoft in online search business, despite losing many of its key executives. Yahoo board member and activist investor Carl Icahn says that he will be happy if Microsoft acquires yahoo business because it will definitely help yahoo to cut down costs and strengthen the balance sheet.