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2008

Key Microsoft Exec Instrumental Behind Yahoo Deal Leaves For Juniper

July 24, 2008 0

Redmond, Wash., — Microsoft Corp. on Wednesday said Kevin Johnson; the chief of its snowed-under Windows Vista and online products and an instrumental figure in the company’s botched $47.5 billion bid to buy Yahoo Inc., is leaving Redmond, to become chief executive officer at Juniper Networks, Microsoft confirmed Wednesday.

No immediate successor has been named for Johnson, who as president of Microsoft’s Platforms and Services Division had reported directly to CEO Steve Ballmer.

 

Johnson, who joined Microsoft in 1992, also supervised the Windows business. The company will split Johnson’s group in two, Microsoft said in a statement. He is leaving to run Juniper Networks Inc., the Wall Street Journal reported.

Johnson, a longtime lieutenant of Microsoft chief Steve Ballmer, reportedly is taking a top job at Sunnyvale-based Juniper Networks.

As one of three divisional presidents at Microsoft, Johnson took over the Windows and Online group in 2005, overseeing the unsuccessful Yahoo bid and the release of Windows Vista. A possible successor to Chief Executive Officer Steve Ballmer, Johnson led Microsoft’s efforts to gain ground on Google Inc. in the Internet search and advertising market.

“This is surprising — I thought he was at Microsoft for the long haul,” said Matt Rosoff, an analyst at Kirkland, Washington-based Directions on Microsoft. “There were one million questions about the online-services division. This is one million and one.”

Analysts said the move shows that Johnson — or his notoriously demanding boss — had become frustrated with Microsoft’s failure to build an online business capable of challenging Internet giant Google by buying established Web companies. But they were baffled over what Johnson’s departure means to the effort to buy Yahoo.

Johnson “was the architect of the Yahoo deal,” said Rosoff. “He thought it was essential.”

After a short transition, Johnson will step into the role of chief executive officer at Juniper Networks Inc., a networking hardware maker, according to a person familiar with the situation.

Sarah Sorensen, a spokeswoman for Sunnyvale, California- based Juniper, declined to comment.

Johnson oversaw more than 30 acquisitions to in an effort to boost Microsoft’s Internet software and services, according to his biography on the company’s Web site. Before that, he ran sales and marketing the Redmond, Washington-based company.

In a statement announcing Johnson’s departure, Ballmer praised Johnson’s contribution to the company.

“Kevin has built a supremely talented organization and laid the foundation for the future success of Windows and our Online Services Business. This new structure will give us more agility and focus in two very competitive arenas,” Ballmer said. “It has been a pleasure to work with Kevin, and we wish him well in the future.”

While Microsoft will conduct an internal and external search for a replacement to run the online group, other online executives will remain, according to Microsoft. Senior vice-president Satya Nadella will continue to lead Microsoft’s search, MSN and ad platform engineering efforts.

Senior vice president Brian McAndrews will continue to run the Advertiser & Publishing Solutions Group, which according to Microsoft has signed more than 100 new publisher deals this year.

“A 16-year veteran of Redmond, Johnson leaves Microsoft with $13 million in stock, according to a recent SEC filing.”