A high-level reorganization has left Microsoft headquarters directly in charge of WebTV's most promising businesses.

A high-level reorganization has left Microsoft headquarters directly in charge of WebTV's most promising businesses, a move that sources say effectively takes much of the company's operations away from its co-founders for the first time since the subsidiary was purchased three years ago. Microsoft confirmed that Jan DeVaan, senior vice president of the software giant's interactive television group, will personally manage WebTV's "platform" operation, also known as Microsoft TV. That operation has become increasingly important to Microsoft as it has intensified efforts to move into the nascent interactive TV market, while WebTV's original services have waned by comparison. The assertion of control from Microsoft's headquarters in Redmond, Wash., is a clear departure from previous years, when WebTV operated with relative--and rare--independence from its parent company. Even after Microsoft bought the company in 1997, WebTV co-founder Steve Perlman continued to lead the subsidiary until he was succeeded by Bruce Leak, another co-founder, last year. Although Microsoft played down the management shift, it is taking place at a critical juncture for the company's growing interactive television initiative. The changes follow some high-profile delays in Microsoft TV products and is occurring as WebTV faces new competition from America Online. Under the changes, which have not been announced, DeVaan will become acting general manager of Microsoft TV. He will assume responsibilities previously held by the third WebTV co-founder, Phil Goldman, until a permanent successor is found. WebTV spokesman Tim McDowd said Goldman will work on interactive TV business development in the Microsoft.Net initiative. Sources say the shakeup, which caught many off guard among the rank and file at WebTV, is a result of product delays in the Microsoft TV group and was ordered as part of a company-wide reorganization announced last week.