Microsoft Seals aQuantive Deal, Creates New Ad Solutions Group

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Microsoft has completed its acquisition of aQuantive and created a new Advertiser and Publisher Solutions group to focus on its ad platforms and the advertiser and publisher community.

The new division will have responsibility for nearly all of Microsoft's ad platforms and services, including Atlas, DRIVEpm, MSNDR, Microsoft AdCenter and aQuantive's agency arm, Avenue A / Razorfish. The new group will also have control of an Emerging Media Group which includes in-game advertising firmMassive and mobile ad firm ScreenTonic.

The APS group will be run by Brian McAndrews, CEO of aQuantive, who will report directly to Kevin Johnson, president of Microsoft’s Platforms & Services Division (PSD). Also reporting to Johnson is Steve Berkowitz from the Online Services Group, which includes the MSN.com portal, Windows Live services and Live Search, and Satya Nadella from the Search & Advertising Platform Group.

AQuantive co-founder Mike Galgon has been named chief advertising strategist and will report to McAndrews. As part of the Emerging Media Group, the Massive and ScreenTonic divisions will report to Cory Van Arsdale, who in turn will report to Karl Siebrecht, president of Atlas.

Additionally, MSN stalwart Yusuf Mehdi has been named to the newly formed post of senior vice president, Strategic Partnerships in the Platforms & Services Division.

The company also stated that following the completion of its acquisition of AdECN, CEO Bill Urschel and his staff will report to Alex Gounares, corporate vice president, adCenter and Commerce, under Satya Nadella’s Search & Advertising Platform group.

Both aQuantive's and AdECN's employees are expected to maintain their current offices in Seattle and Santa Barbara respectively.

One holdout in the consolidation of advertiser-facing services and technologies in the APS group is Microsoft's Digital Advertising Solutions sales force, which will continue to report to Berkowitz in the Online Services Group.