WordPress MU

Crazy question here, but looking at different forums I can not find my answer.

I have a company and I am looking for a way to have the different departments have their own site either through a sub-domain or sub-directory. They will be able to select their own themes that I provide and change their content and add their own pages to their site with the ability to add pre-formatted pages that are created for them should they choose. The department heads should be able to manager their site and not be able to manage the company site.

So basically a department site within the company site. This looks like MU can do that, I just have not seen any examples of this or any mention of it. I am also looking at Joomla to see if that is the platform I should be using, but I like Wordpress. Any thoughts?

Thanks and Happy Holidays!

WPMU can do it. Each department can have its own blog with one person as the owner of that blog and then other people in that department can sign up as contributors.