Microsoft Turning Over Ad Business to AOL, Map Technology To Uber

Microsoft Corporation MSFT has announced a pair of deals in its latest efforts to cut back on its non-profitable online operations.

Reuters reported that Microsoft has reached deals with AOL, Inc. AOL and Uber to take over Microsoft’s display advertising business and map generating technology, respectively.

The AOL Deal

Although the financial terms of the deal between Microsoft and AOL (now owned by Verizon Communications Inc VZ), were not disclosed, the deal is reportedly a 10-year agreement. AOL will now sell display ads on MSN, Outlook.com, Xbox, Skype and other Microsoft apps in certain major countries. In addition, Microsoft’s Bing will now be AOL’s primary search engine staring in 2016.

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The Uber Deal

Without disclosing specific terms of the deal, Microsoft announced that Uber will take over Microsoft’s imagery acquisition and map data processing segments. Uber already uses map services provided by Google Inc GOOGGOOGL, Apple Inc. AAPL and Baidu Inc BIDU.

Fallout

Microsoft no longer specifically reports financial results for its online operations segment, but the segment has reportedly lost more than $10 billion in the past five years.

“Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case, search and search advertising and building great content and customer service,” Microsoft said in a statement.

As Microsoft makes moves to streamline its operations, the company reassured employees that the two deals will involve no layoffs. Microsoft’s ad display employees will be offered a chance to transfer to AOL, and Uber is reportedly offering jobs to Microsoft employees affected by their deal as well.