Microsoft selling Bing imaging to Uber, moving display ads to AOL

Satya Nadella promised last week that there would be "tough choices" ahead for Microsoft, and it appears they've started.

TechCrunch reported that about 100 employees working on image collection will be moving from Microsoft to taxi operator Uber. Specifics, including the price, are undisclosed. Microsoft is transferring some "assets" to Uber along with the people, but what those are isn't clear.

Separately, Microsoft announced a new partnership with AOL and AppNexus. AOL is taking over Microsoft's display ad business, including mobile and video ads, in nine markets (Brazil, Canada, France, Germany, Italy, Japan, Spain, UK, and US). Ads sold will span both AOL's properties, such as Huffington Post and TechCrunch, and Microsoft's online presence, such as MSN and Outlook.com.

Ad sales and technology in 10 additional markets (Austria, Belgium, Denmark, Finland, Ireland, the Netherlands, Norway, Portugal, Sweden, and Switzerland) will be handled by ad auction house AppNexus.

For its part, Microsoft will power search and search ads across AOL's properties in a 10-year agreement. On the back of a similar deal with Yahoo, Microsoft's Bing has grown to a 20 percent market share in the US; adding AOL should further extend the reach of Bing and Bing Ads.

Bloomberg reported the Microsoft-AOL deal before it was official, and the outlet writes that about 1,200 jobs will be impacted as a result. Some of these positions will move to AOL, and some staff will be offered other positions within Microsoft.