Seeking Alpha

Microsoft pares gains as Street mulls post-Ballmer era

  • Though the reaction to the news Steve Ballmer plans to retire within 12 months has been almost uniformly positive, opinions vary considerably on how big of an impact new leadership will have.
  • BI's Jay Yarow reports Microsoft's (MSFT +5.5%) board isn't forcing Ballmer out, and is in "lockstep" with his vision of Microsoft's transformation into a devices/services company.
  • Long-time Microsoft follower Mary Jo Foley provides a list of potential replacements. It includes Redmond execs such as COO Kevin Turner and ex-Skype CEO Tony Bates, as well as ex-employees such as Steven Sinofsky, (Nokia CEO) Stephen Elop, and (ex-Juniper CEO) Kevin Johnson.
  • Microsoft's reorg, which breaks up the company's silo-like business divisions into functional units, should give the company's next CEO plenty of freedom to mount initiatives that span disparate product lines.
  • Morgan Stanley thinks Microsoft shares remain a steal. Stifel argues it's time to take profits, and that estimate cuts are on the way.
  • Ballmer owns 333M Microsoft shares. That means he's $600M wealthier than he was before announcing his resignation.
  • More on Microsoft
Comments (9)
  • It's like being on the Titanic while it's sinking and cheering when they appoint a new captain.
    23 Aug 2013, 12:13 PM Reply Like
  • Yep, only $28.8 billion in cash flow from operations last year (that's 75% more than Google racked up in 2012), to go with the company's $76.7 billion of cash in the bank account as of the most recent quarter end; S&T continued to grow operating income at a double digit pace (more than doubled in the past five years), MBD continues to be a cash cow, Xbox One will be a nice boost for E&D, and Phone / Tablet / Bing share all increasing, slowly but surely.

     

    Microsoft certainly is sinking quick...
    23 Aug 2013, 12:38 PM Reply Like
  • $600M for resigning with no succession plan. Nice. It's so easy to hate Microsoft, isn't it?
    23 Aug 2013, 12:37 PM Reply Like
  • The reference was that Balmer's net worth has increased by $600 million due to the increase in (MSFT) stock price today based on the shares that he holds. He isn't being paid out $600 million.
    23 Aug 2013, 12:58 PM Reply Like
  • How much more will he be worth if he comes out and leaves the company tomorrow?
    23 Aug 2013, 02:11 PM Reply Like
  • The worst mistake in the history of ever would be to even consider Kevin Turner for CEO. He is hugely responsible for the infighting employee mentality at the company. Please, please have Ballmer take Turner and their stack ranking, cannibalistic review system with them.
    23 Aug 2013, 03:13 PM Reply Like
  • Turner is on the way out, not to the top, from last reorg....
    23 Aug 2013, 03:19 PM Reply Like
  • Jon Corzine is out of a job. Maybe he can be CEO.
    23 Aug 2013, 06:50 PM Reply Like
  • Ballmer was a great investor, he managed to accumulate at least 330M shares of MSFT.
    25 Aug 2013, 08:31 AM Reply Like
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