Microsoft brings in ex-Yahoo exec for ads, search

Microsoft has hired an ex-Yahoo executive to run its Online Services Group, the company has announced. Qi Lu -- who until recently was the executive VP of engineering for the Search and Advertising Technology Group at Yahoo -- will assume his new role on January 5th, where he will report directly to CEO Steve Ballmer. His responsibilities should involve directing Microsoft's efforts in online search and advertising, which are centered around Windows Live.

The move is notable mainly due to the intense rivalry between Microsoft and Yahoo, stemming from a failed attempt by the former to buy the latter earlier in the year. Yahoo's stock has since plunged along with the economy, and company co-founder Jerry Yang recently stepped down as CEO in the aftermath. Microsoft is believed to have wanted Yahoo as a foil to Google, which it sees as its chief rival in many fields, including not only search and advertising but work applications and cellphones.

As a search engine Windows Live is continuing to struggle for acceptance, ranking third behind Google and Yahoo, with Google occupying a clearly dominant position.