Software giant Microsoft Corp reorganized its MSN Internet unit and reassigned its head Bob Muglia, the Wall Street Journal said on Monday. In a companywide e-mail sent last week, Chief Executive Steve Ballmer said Senior Vice President David Cole would take over many of Muglia's responsibilities and head-up a new ``MSN and Personal Services,'' the newspaper reported in its online edition. Cole, a senior vice president who had worked for Muglia, will oversee the new ``.NET My Services'' venture, including delivery of personalized e-mail alerts to people about travel plans, stock quotes and music promotions, among other things, the newspaper said. Cole, 39, will report directly to Ballmer, it added. The move highlights Microsoft's ongoing focus on the America Online unit of AOL Time Warner Inc and Microsoft's intense effort to roll-out a new version of MSN, which competes with America Online, next year, the newspaper said.The move, essentially a demotion for Muglia, 42, is surprising to some outside observers, the newspaper said, adding that his title has changed from group vice president to the lower-ranking senior vice president, working in Jim Allchin's vast Windows business.