Microsoft (MSFT -0.3%) signs a "cooperation agreement" with activist hedge fund ValueAct, which owns a 0.8% stake in the company. The deal provides for regular meetings between the $12B fund's President, Mason Morfit, and Microsoft directors/management. It also gives Morfit the option to join the board after the company's annual shareholder meeting in Nov.
It has been speculated that ValueAct may have had a part in agitating for Ballmer's exit.
On the product side, Microsoft will double the storage space for Exchange Online and Office 365 to 50 GB. Earlier this week, Microsoft more than tripled storage capacity for SkyDrive Pro to 25 GB.