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"Microsoft (MSFT +4%) can flourish in the hybrid cloud world," states ValueAct Capital founder...

"Microsoft (MSFT +4%) can flourish in the hybrid cloud world," states ValueAct Capital founder Jeffrey Ubben at a investment conference, asserting the software giant's enterprise ops can perform well regardless of how PC sales fare. If Uben plans to use his firm's new $2B stake to make an activist push, he isn't showing his hand for now. Instead, he's comparing ValueAct's investment in Microsoft to its investment in Adobe, which (from all indications) is successfully migrating its customer base to cloud apps, and insisting his thesis will pan out over the next 3-5 years.
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Comments (2)
  • ewmpsi
    , contributor
    Comments (1667) | Send Message
     
    Two words 1) Activist and 2) Investor, far too often the emphasis is place on "Activist" when it should be on "Investor".

     

    This could merely be an "investment" in a company where there is perceived "value" and the direction the company is headed in will unlock the value over time. Not all companies need to be prodded where the "activist" thinks it should be headed.

     

    It can be argued that “activism” was needed a decade ago when the company failed to respond to changes and took its eye off the consumer side. However, now that mobile is gaining traction (thanks to Nokia) and Azure, Skype and Yammer are gaining momentum; not to mention Xbox and Xbox Live are both approaching major new product launches and marketing campaigns, the last thing MSFT needs inserted in the middle of all this is “activism”.

     

    If ValueAct is smart they will allow 2013 to come to a close and weigh the results before doing anything.
    22 Apr 2013, 09:52 PM Reply Like
  • Coaly1234
    , contributor
    Comments (696) | Send Message
     
    ewmpsi - good comment
    23 Apr 2013, 06:42 AM Reply Like
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