Last week, AOL denied previous reports that Cahall was heading for the exit in the wake of Reynar’s possible arrival. In a staff memo obtained by paidContent, Armstrong told the troops that Cahall took on the role of CTO after he had asked him to move into that position from a broader business role at the company. However, Cahall has decided to move back into what Armstrong said was “the business side of technology.” No other specifics were given about Cahall’s next move.

Nashville-based StudioNow, a social net and platform for professional video services, has raised $3.5 million in its three years of existence. Backers have included PE firm Clayton Associates, Claritas Capital, and Fred Goad and Jim Kever, the original founders of Envoy, a precursor to WebMD (NSDQ: WBMD). The $36.5 million to acquire it is in cash and stock with a portion of the cash paid out over multiple years, according to the announcement.

StudioNow’s main purpose within AOL will be to support the company’s new content management system, Seed.com. While it will still promote its own video services business, AOL wants to immediately begin offering ways to bring in video content creators to Seed. Last month, AOL made its first hire for Seed, Saul Hansell, the founding editor of the NYTimes.com’s Bits blog.

Aside from building up Seed, StudioNow will also work on AOL’s original video programming, which includes AOL Sessions, Unscripted, Moviefone Minute and the Engadget Show. AOL will also make StudioNow available to marketers for branded advertising. Lastly, StudioNow will also be asked to work with AOL’s content partners.

The other part of building out products like Seed will go to Reynar. He is the co-founder of social net tech company DBT (NYSE: BT) Labs. Before that, Reynar spent four-and-a-half years at Google, the previous home of AOL CEO Tim Armstrong, who has brought over a number of former colleagues since taking on the role of steering the company last spring.

Reynar’s first job at Google was as a product manager. He was then promoted to engineering manager. During his time at the search giant, Reynar formed an internal startup team designed to find new approaches to search. One of the products that came out of that was Google Squared, an experimental search tool that gathers facts from the web and presents them in an organized collection. While that one wasn’t that well known, Reynar’s unit also came up with Google Blog Search. Even more notable than that achievement, during the five years he spent previously at Microsoft (NSDQ: MSFT), Reynar headed the Authoring Services team that was responsible for Word.

It’s not clear if Reynar’s arrival and Cahall’s departure were connected. In any case, Cahall’s leaving comes a week after Shashi Seth handed in his resignation barely 90 days into his tenure. Release.