• D: All Things Digital, Monday, July 20, 2009 2:32 PM

Kara Swisher reports that Microsoft is getting ready to overhaul its MSN online portal. The software giant, whose talks with Yahoo over a possible search deal are reportedly close to a resolution, is preparing "a major redo of what U.S. and, possibly, international consumers will see, as it doubles down on five key content verticals, while cutting back on others." Among other things, MSN plans to add data from its Bing search engine to its News, Sports, Finance, Lifestyle and Entertainment sites.

"It's a decision to make it so MSN does less better," one source tells Swisher. "So there will be a focus of attention on a smaller number of categories in which we can be either #1 or #2 in, rather than #4 or #5." This does not mean that Microsoft is abandoning areas like technology, where it's not as competitive. Swisher says it will instead offer automated content generated by many content partners in certain verticals. Scott Moore, executive producer and general manager of MSN's content business, is heading the reorg.

"It is not rip and replace," said another source. "It is putting a lot of scale where we can compete best and using technology tools to help elsewhere." Swisher notes that Yahoo and AOL have both adopted similar strategies with some of their content properties.

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