Microsoft sends display ad business to AOL

SAN FRANCISCO — Microsoft is sending much of its display advertising business to AOL.

AOL struck the deal with the technology giant to take over sales of display, mobile and video ads on Microsoft properties such as MSN, Outlook.com and Xbox gaming consoles in the USA and eight other markets.

Microsoft's Bing search engine will also deliver search results and advertising on AOL properties for 10 years. Bing replaces the Google search engine.

Microsoft made the announcement Monday. AOL was recently acquired for $4.4 billion by Verizon.

For years Microsoft tried to compete with Google by heavily investing in advertising technology. In a memo to employees last week Microsoft CEO Satya Nadella said the company would have to make some "tough choices" as it focuses on seizing "new growth."

Microsoft also said Monday that it would sell some digital mapping assets to Uber.

Financial terms of the two deals were not disclosed.

"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 consumer services," said Rik van der Kooi, Microsoft's corporate vice president of advertising and consumer monetization.