$2 Billion Microsoft Investor Wants to Fire Ballmer, and sell the Xbox Division
Microsoft CEO Steve Ballmer had announced the will be retiring as CEO within the next year, but that is not fast enough for ValueAct, who own a 1% claim in firm. More details past the link.
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.
That last quote is telling because I’ve been saying this for a long time. Microsoft and Sony’s gaming divisions don’t make much. They pour resources into super power machines, sell them at huge losses, then pay 3rd parties millions of dollars for exclusive maps or a couple of missions.
It’s a destructive behavior that does not bring long-term stability to the gaming industry. It just creates skepticism, and irrational behavior by companies (EA, Konami, Bethesda)
Yo Pachter the “Xbox is cool, but by our estimates Microsoft has not made money at this”
The Pach-Attack’s bias bleeds through his shirt! How can one analysts say Microsoft is so great and Nintendo should leave the console space, when the other ones say aren’t even making money? And remember, Rick Sherlund is a ‘long-term Microsoft analyst,’ so I think he knows more about Microsoft’s financials than the fortune teller Pachter.
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