Microsoft Investor Wants To Fire Ballmer And Sell Xbox Division
Ryan Martin / 4 years ago
A report by BizJournals claims that ValueAct, a $2 billion Microsoft investor with a 1% stake in the company, is seeking to achieve some major changes at Microsoft. Long-term Microsoft analyst Rick Sherlund claims that big changes are going to take place very soon as other Microsoft shareholders support the decision to get rid of Steve Ballmer – in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy “inspires little confidence” in shareholders.
Apparently Microsoft has no choice but to give ValueAct a seat on the board otherwise they may launch a “public war” on Steve Ballmer and Microsoft which could end with serious turmoil at Microsoft.
“A decision by the board at Microsoft to offer a nomination for a board seat could keep the activist agenda behind closed doors and take longer for shareholders to see potential benefits” stated Sherlund.
Furthermore, it is believed they might target the Xbox division and try and get rid of it altogether. This would allow Microsoft to focus on other products and mainly Windows.
“Xbox is cool, but by our estimates Microsoft has not made money at this” believes Rick Sherlund.
Image courtesy of The Next Web