Online boss takes leave of Microsoft

Software Departure fuels speculation over the future of IMG.

Microsoft's vice president in charge of online business has decided to step down, causing speculation over the future of the company's interactive media group (IMG).

The announcement of Pete Higgins' departure suggested the company was re-evaluating its online strategy, in a bid to recoup the millions it has spent acquiring internet-oriented companies, analysts speculated.

Higgins will take a leave of absence - a common practice at the software giant - at the end of the year and return during 1999 to a different post.

In the meantime, Steve Ballmer, Microsoft president, will lead IMG until a successor can be found.

Over the past two years Higgins has been leading Microsoft's push into the online area by bolstering the Microsoft Network (MSN) portal service to compete against Yahoo, Excite and others.

Microsoft has made several acquisitions to strengthen its on-line position.

Of its purchases the most significant have been the free Web-based email provider Hotmail, Net privacy company Firefly and online advertising firm Link-exchange.

Yankee Group analyst Melissa Bane said the fight with Yahoo was not over yet and to expect a stronger MSN.

'Microsoft is launching a multimillion dollar advertising campaign to promote the access unit and has brought all the commerce properties under the same umbrella,' said Bane.

'With the recent acquisition of Linkexchange, I think that the portal market will start to see some very fierce competition from the Microsoft camp in the near future.'