The Wall Street Journal is reporting that the head of Microsoft’s online business, who led the company’s bid to buy Yahoo,  is leaving the Microsoft for Juniper Networks.

Kevin Johnson, is president of Microsoft’s Platforms and Services Division, which includes both the online services business and Windows software for personal computers.

The Journal also reported that Johnson’s departure will be followed by a reorganization of the business unit he oversaw.

The Journal reports that Mr. Johnson was part of the small team of Microsoft executives that led the effort in January to bid for Yahoo.

Certainly this is not a good sign that Microsoft will resume it persuit of Yahoo.

In separate news today Egan-Jones Proxy Services recommended that Yahoo’s shareholders support the eight board members up for re- election at the company’s upcoming annual meeting.

In a prepared report, Egan-Jones determined that Yahoo’s directors were qualified for reelection, despite widespread discontent among shareholders upset over the company’s poor performance and the board’s failure to clinch an agreement to sell Yahoo to Microsoft.

“We thought that their procedures with respect to the approach by Microsoft was appropriate under the circumstance,” said Kent Hughes, managing director of Egan-Jones’ proxy advisory unit.