Steve Ballmer May Be Doing A Major Reorganization At Microsoft - Good News?

Jun. 4.13 | About: Microsoft Corporation (MSFT)

According to a report online Monday from All Things Digital, Microsoft (NASDAQ:MSFT) CEO Steve Ballmer may be doing a substantial re-org of the company.

The report states in part:

According to sources close to the situation, Microsoft CEO Steve Ballmer is working on what is likely to turn into a significant restructuring of the massive software company, which could also move several current execs to more prominent roles.

The report goes on to state that the re-org might signify larger roles for several current executives.

There is speculation that this might be Mr. Ballmer seeking to align the company with his vision for it being a "devices and services" organization.

If this report is true, it could mean big things for the organization going forward and could be good news for investors.

While we don't know what the moves will be, we can make some guesses about the general direction this could go in.

  • There might be a reduction in workforce.
  • There might be a consolidation of executives.
  • Executives in successful business units may see more responsibility.
  • Business units may be combined to create better efficiencies.
  • The company may be leaner, cleaner and meaner moving forward.

So far, assuming the pieces are moved around wisely, I think this could be a great thing for the company.

Some have speculated that Mr. Ballmer may be doing this because of shareholder pressure from large companies like ValueAct Capital which bought about 1 percent of Microsoft's stock.

Whatever the reason is, I think this could be good news.

The takeaway for investors

Watch for changes that are perceived to have value to the company.

If Steve Ballmer does a careful, surgical job here, the stock may be on the verge of a substantial share price increase.

Stay tuned...

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am the CEO of Learn About The Web Inc. - learnabouttheweb.com. While I have no business relationship with Microsoft of any sort, I am the owner and editor of several Windows websites (Windows8update.com, Windowsblue.com, Windows81.com etc).