Greg Nelson (pictured here), who has had the thankless job of running MSN for Microsoft, has left that position and been given the even more thankless task of running the integration of the complex search and online advertising partnership struck by the software giant and Yahoo.

Microsoft (MSFT) sent out an internal email to staff about the move for the GM of MSN’s Global Media Group, which has already taken place.

MSN U.S. head Scott Moore is now reporting directly to MSN Corporate VP Erik Jorgensen. So will Brett Wayn, who has been working under Nelson on international coordination and who has taken over MSN’s international business on an interim basis.

Nelson’s counterpart at Yahoo (YHOO), according to sources, will be Mark Morrissey (pictured here), who is currently SVP of Products at the Internet giant.

The pair will have their hands full in what will ultimately be a two-year effort, sources estimate, to try to improve their competitive edge against Google (GOOG) in the search arena.

BoomTown’s title for the relationship: A Couple of White Geek Guys Sitting Around Arguing!

The role includes coordinating a massive shift of engineering talent from Yahoo to Microsoft, making sure ad systems are copacetic and most of all, smoothing over what is likely to be a number of bumps in the partnership.

To help make the frustrations less frustrating, there is a $50 million annual payment to Yahoo by Microsoft for three years, for unspecified “transition and implementation costs.”

At least 400 Yahoo employees will be hired by Microsoft, which will also provide funds for retention packages to keep 150 more Yahoos motivated during the transition.

The “Definitive Agreement” between the Silicon Valley company and the Redmond, Wash.-based Microsoft, which had been slated to be signed by Oct. 27, 2009, is about to be completed.

Then, as soon as regulatory approvals are in place, it will be showtime for Nelson and Morrissey.

Just after he got the job 10 days ago, BoomTown got the chance to chitty-chat a bit with Scott Moore (pictured here), the former Yahoo media chief, who is returning to Microsoft, where he will lead online content efforts in the U.S for its MSN online service.

Apparently, you can go home again!

It’s a touché tale because it feels like Moore was pretty much rehired by MSN exec Greg Nelson (also in on the conversation with Moore) to give Yahoo a wallop where it really will hurt–its powerful content business, one of Yahoo’s few bright spots.

And to add another layer of irony, Moore replaced Jeff Dossett, who replaced Moore at Yahoo (YHOO) after Moore suddenly left the troubled online company late last year.

In our conversation, Nelson began talking first about the continued commitment of Microsoft (MSFT) to compete in the online media business despite its lackluster record over the years.

“We are making a big bet with Scott because he understands the key themes for us, which is that this is a scale business,” said Nelson (pictured here). “We all have a conviction that Microsoft has what it takes to compete in that arena.”

Moore agreed, noting that “very few companies have the scale that Microsoft has and you look at the size of the audience and the tools and great assets we can weave in and you realize the possibilities as the market is changing.”

But that scale has not helped Microsoft so far, although Moore argued that it still has a chance as the online content landscape changes.

By change, Moore posits that the Internet is now shifting from being a place to get news and information to becoming a primary entertainment medium.

“You can see that phenomena is somewhat in social media, the idea that it is not only about entertainment, but about making all kinds of choices through the Internet,” he said.

Because of Microsoft’s large audience, which still lags behind Yahoo and Time Warner (TWX) online service AOL, Moore thinks it has the opportunity to leverage the distribution strength with a variety of entertainment partners.

But he said he is not ruling out more original content from Microsoft.

“Most of it is still aggregated content, but MSN also has to think about having stuff no one else has,” Moore said. “You can make it, license it or partner.”

Both Moore and Nelson said it is important that the small amount of premium content is special, such as Microsoft’s deal with NBC during the Olympics.

“It’s a pyramid with the original and premium content on top,” said Nelson.

That does not mean going too far afield though. “I think we have to choose a spot where we already have a large audience and then program to keep them coming back,” said Moore. “It’s not doing something out of whole cloth–that’s not the idea.”

That’s presumably the exact idea behind MSN’s launch of Wonderwall last week, a slick, standalone celebrity Web site (pictured here), designed to compete with AOL and Yahoo offerings.

Moore, who was involved with the creation of Yahoo’s top-ranked omg! pop culture site, was not part of the Wonderwall effort and he did try to tamp down the idea of going head-to-head with former colleagues at Yahoo.

“I have a lot of friends and a lot of great memories there, but it is also great to go back to my roots,” said Moore.

Nonetheless, he still managed to add that he wanted to get MSN sites to top status as soon as possible. “When I got to Yahoo it was not No. 1,” he said.

Nelson said Microsoft was committed to content, even after a history of less-than-stellar results.

“Ideas are free, and so it is all about execution,” said Nelson. “What is our level of conviction? How committed is Microsoft? Very committed, because it’s the future of the company.”

In an unusual homecoming and odd job switcheroo between two Internet execs, former Yahoo media head Scott Moore is returning to Microsoft to lead its U.S. content efforts, according to many sources both inside and outside the company.

Moore (pictured here) will become U.S. executive producer, responsible for leading the content and programming strategy for the MSN online service. He will return to Microsoft’s Seattle area HQ in mid-March and report to Greg Nelson, GM of the MSN Global Media Group.

Microsoft (MSFT) declined comment about Moore’s new job, but sources said news of the appointment will be officially announced Monday.

But a memo about Moore’s new gig went out internally to some of the MSN staff earlier today, sources said. In fact, the return of Moore had been widely rumored inside Microsoft, even though there were several other internal and external candidates considered–including another former Yahoo, one source said–for the job.

Moore left Yahoo (YHOO), which was first reported here, last November due to unhappiness over the turmoil at the company and also to pursue a start-up idea he had about a local news site.

Moore even talked about the idea on the record with BoomTown (see video below), just as he was leaving Yahoo’s Santa Monica-based Media Group. Since he left Yahoo for good in December, Moore has been working on his start-up plans and took time off to go on a safari trip to Africa.

(Here’s a link to Moore’s Africa photos, in fact, which are quite good.)

But with the economic downturn making it harder for new start-ups to get funded on good terms, a desire to be back in the Seattle area, where his children live, and a new effort by MSN to compete better in the content business with top-ranked Yahoo, sources said Moore felt the powerful job at Microsoft would be a terrific challenge.

In what is a case of Web exec musical chairs, Moore had previously been replaced at Yahoo–in a rushed appointment–by Jeff Dossett. Dossett came to Yahoo from, wait for it, Microsoft, where he had held the job Moore is now taking.

In that move, also first reported here, Dossett was given a different title at Yahoo than Moore, as SVP of the U.S. Audience Group (Moore was SVP of the Media Group at Yahoo).

When he first started talking to Yahoo, Dossett (pictured here) was actually up for a job to run business development for Yahoo. But Moore’s sudden decision to leave had his boss, Yahoo’s EVP of U.S., Hilary Schneider, scrambling to fill the post. Dossett’s experience at MSN made him the obvious choice.

Now Moore’s appointment puts the pair in head-to-head competitive positions in the online content business, a clash that has been consistently won by Moore, when he had Dossett’s job at Yahoo and Dossett had Moore’s job at MSN.

Moore should also be comfortable at Microsoft and move into his job more easily. Previous to coming to Yahoo in mid-2005, he was president of MSNBC.com and publisher of Slate.com. He had worked at Microsoft for a decade.

Moore will oversee Microsoft’s involvement in the MSNBC.com joint venture again, along with all of Microsoft’s domestic content programming, which makes up a bulk of its efforts in the area.

And with Moore back on board, how MSN will better compete with the content juggernaut Yahoo is–due to Moore’s efforts, in part, and one of the troubled company’s stronger units–will be interesting.

That’s because Yahoo’s news, finance, sports and other properties typically rank as No. 1 online by far.

Time Warner (TWX) online unit AOL has also tried recently to improve its content offerings and has gotten some traction. It recently upped the ante with its new MediaGlow online studio effort of niche blog sites.

At the very back of this pack, Microsoft has made innumerable efforts in the content space over the years, mostly unsuccessful–Underwire!, Mungo Park!–and has settled more into the aggregation model.

But it still has a lot of interesting original content efforts under way, such as an unnamed celebrity-focused site property it is reportedly launching within the next week with former Yahoo media exec–and Moore’s former boss–Lloyd Braun.

Ironically, Moore launched a Yahoo celebrity site, omg!, initially pushed by Braun when he was at Yahoo, which has been successful.

Here is the video interview I did with Moore at his Yahoo going-away party about his future plans. Below that is another one I did when he was czar of Yahoo content, in which he talked extensively about the future of content on the Web.

While BoomTown is still gathering information, it looks like longtime Microsoft exec Yusuf Mehdi (pictured here), who is now in charge of marketing, online audience business development and product management for MSN and the search properties, will get more added to his portfolio, including overall business development for the online properties.

Mehdi, whose current title is SVP of the Online Audience Business, could also eventually get purview over programming for MSN too, said several sources.

Both those business units currently (and somewhat inexplicably) report to Satya Nadella, the SVP who heads engineering for Microsoft’s search, portal and advertising platform group.

Nadella and Mehdi are the two key execs who report to Qi Lu, a former Yahoo tech star who was recently hired as president of Microsoft’s online services group

What that means for MSN’s Corporate VP Erik Jorgensen and the GM of its Global Media Group, Greg Nelson, who report to Nadella, is unclear.

But it appears that the Microsoft (MSFT) online group is essentially being split into two clear parts: Engineering, and business and content operations.

Advertising sales, which had previously been under now-departed Microsoft exec Brian McAndrews, has been moved to Microsoft’s centralized Sales, Marketing and Services Group, led by chief operating officer Kevin Turner.

The changes are interesting, given all the behind-the-scenes talks that are now going on between Microsoft and Yahoo (YHOO) and Time Warner (TWX) online unit AOL over their search and search advertising businesses.

Microsoft has been seeking to take over search for both Yahoo and AOL, with its CEO Steve Ballmer recently in talks with both companies, in order to give it a decent market share in its ongoing quest to compete with Google (GOOG) in search.

Right now, Google dominates that market with an over 70 percent share, while Microsoft has just under 10 percent.

Microsoft is announcing its second-quarter earnings today, and many expect it to also announce layoffs, due to the tough economic environment.

Why settle for less, when you can have the whole enchilada?

Thus, here is the entire MSN rejiggering internal memo BoomTown wrote about earlier today.

It was penned by Greg Nelson, head of the MSN Global Media Group, who reveals in it–interestingly–that he has not yet filled the job of U.S. Executive Producer of Microsoft’s consumer online service.

But it does outline a series of chair-changings at the unit, which has struggled over the years to make a dent in the consumer online space.

Also, a note to “note taker” at the Town Hall meeting next Tuesday at Microsoft (MSFT) HQ to discuss the changes, who is mentioned below: You can email me those meeting notes you are apparently taking here at kara@allthings.com and I promise not to tell anyone (well, to tell you the truth, I will tell everyone).

In any case, here is the whole memo:

From: Greg Nelson (MSN)
Sent: Friday, November 21, 2008 1:57 PM
To: Global Media Group Leadership Team; Worldwide EP Team; MSN Leadership Team; Online Audience Business Group FTE; Bill Shaughnessy Extended Directs; MSN US Media ALL
Cc: Erik Jorgensen’s Direct Reports; Satya Nadella; Yusuf Mehdi
Subject: MSN US Team

Team:

I am pleased to announce a new organizational structure for the US Media Group as well as the leaders who will fill these roles. I have spent considerable time with the US leaders over the past few months to hear their views on how to meet the challenges and opportunities we have, and I believe this leadership structure positions us for success in our near-term goals as well as our long-term strategy.

MSN US Media Leadership Team

The US Media Leadership Team will be structured as follows:

The group will be led by the US Executive Producer. I am evaluating a very strong field of both internal and external candidates for this role; until the role is filled I will continue to act as the interim US EP. Each of the leaders and teams in the structure share the overall network goal to grow network audience, engagement and revenue. But each has a unique commitment and responsibility toward that goal, as follows:

• Network Programming, led by Rob Bennett–This group will prioritize investments against Network priorities, shape audience strategy, set Network standards, and sponsor cross-network initiatives.
• Network Entry Points, led by Steve Cvengros–This group will focus on increasing exposure, distribution and discoverability of assets by optimizing and expanding entry points to the Network.
• Vertical Programming, led by Sandy Henson–This group will create content experiences to deeply engage the audience and grow Network value in vertical areas. All channels will move into this group.
• Monetization and Analytics, led by Dell Wilkinson–This group will focus on improving yield by making MSN easier for advertisers to buy and APS to sell through inventory insights and APS engagement.
• Chief of Staff, Eva Corets–This role is responsible for driving team processes and business rhythm, and assisting with prioritization of network projects and interaction with cross-division and cross-Microsoft teams.

In addition, Charles Tillinghast (President and Publisher of MSNBC.com) will continue to report directly to the US Executive Producer. The US Media Group will also have a close “dotted-line” partnership with Javier De Lucas and the US Planning Team and a new US R&D leader in the Global Market Delivery Team (to be hired). In addition to running the Global Business Development team for MSN, James McClamroch will also be a member of the US Media Group Leadership Team.

As I mentioned above, all of the channels will move into the Vertical Programming Team. I want to thank Lisa Tiedt, Mark Schnitzer and Scott Ehlers for their leadership of their respective teams, and for their contribution to the US Senior Leadership Team over the past 18 months. They remain an integral part of our organization and will continue to work with their teams and the new US Leads to ensure a smooth transition.

Next steps:

Each of the new network leaders will send follow-on mail soon to give more detail about their groups.

We will be holding an informal Town Hall meeting on Tuesday at 9:00 am in C/1089 to discuss these changes, for the leads to provide more details on their group priorities, and to give you a chance to ask any questions you may have. For those of you who are not able to attend, we will have a note taker and will distribute a recap after the meeting. In the meantime, please feel free to connect with your current manager, or any of the new leaders, to discuss any ideas and comments, or a specific interest you have in these newly defined areas.

Our goal is to finalize the new organizational structure quickly, while allowing enough time for the new leaders to sort out the remaining issues on how their teams work together and ensuring that each employee can be thoughtfully considered for new roles. I have asked the new leaders to make these design and employee discussions their top priority for the next two weeks, and we will send an update on our progress on December 17.

We plan to enter this new org structure in January (at which time we hope that office moves will be kept to a minimum). In the meantime, you will continue to report to your current manager and should keep driving toward your existing commitments. If you change managers in January, your current manager will be responsible for providing input to your mid-year career discussion and ensuring a smooth transition.

The US leaders and I believe this organizational structure will help us to deliver the best results for our business and offer great opportunities for our people. Even in our current challenging environment, it’s important to remember that Microsoft’s resource investment in MSN has never been greater than it is today. I’m inspired by the talent, passion and vision of the US team, and I want to thank you for your commitment to MSN.

Please join me in congratulating Rob, Steve, Sandy, and Dell in their new roles!

Thanks -
Greg

greg nelson . general manager global media group

Here’s part of an internal memo BoomTown obtained about some small, but interesting, changes at Microsoft’s MSN unit, sent out by the GM of its Global Media Group, Greg Nelson, which is under the leadership of–well, frankly–a confusing panoply of execs.

Essentially, Nelson now reports to Satya Nadella, SVP of the Search, Platform and Advertising Group (think engineering and search) and Erik Jorgensen, Corporate VP of MSN (think business and other stuff).

In addition and apropos of nothing, Yusuf Mehdi serves as SVP of the Online Audience Business and Brian McAndrews is SVP of the Advertiser & Publisher Group.

Also, there is a Windows Live group that does mail, communications and groups too, and a lot of other digital bosses too numerous to mention.

You can see why I have been haranguing Microsoft (MSFT) CEO Steve Ballmer for a little digital clarity, especially around its consumer digital businesses and brands. But Microsoft–like a lot of tech-born businesses–loves to overdesign!

Ballmer has been searching for an overall head of that business to sort it all out since Kevin Johnson left in July, whose massive duties were divvied up.

While he has looked at a lot of execs from inside and outside the company, I recently posted that Ballmer’s latest quarry is former Yahoo tech star Qi Lu.

Only Ballmer knows for sure, many have told me, keeping his decision-making on the issue close to the vest.

But, as many insiders and outsiders familiar with the business have noted to me, whoever takes that role as its digital guru has some very hard decisions to make in all its arenas, from search to advertising to content.

There has been no share growth in search for Microsoft, for example, where archrival Google (GOOG) dominates, even as there have been billions of dollars of investment in data centers and engineers.

And it will fall to the person Ballmer ultimately selects as digital head to figure out what to do next.

Microsoft’s failed attempt to buy Yahoo (YHOO) was one way of dealing with the many issues Microsoft is facing, as well as its current interest in buying Yahoo’s search business.

In any case, here are some new changes at MSN, in Nelson’s words:

· Network Programming, led by Rob Bennett–This group will prioritize investments against Network priorities, shape audience strategy, set Network standards, and sponsor cross-network initiatives.

· Chief of Staff, Eva Corets–This role is responsible for driving team processes and business rhythm, and assisting with prioritization of network projects and interaction with cross-division and cross-Microsoft teams.