Microsoft’s Future Will be in the hands of Ballmer’s Successor
As Steve Ballmer, current CEO of Microsoft announced his upcoming retirement, the stock market eagerly awaits the company’s financial future and rebirth of this once leader in technology.
As Microsoft stock (NASDAQ: MSFT) felt a significant leap following the news of Ballmer’s retire, it was clear investors are doing a financial jump for joy in anticipation of the company’s future. But as media focus on the successes and mainly failures of the soon-to-be ex CEO, Microsoft have begun dusting off its thinking caps and looking towards its next leader. Stock rose nearly 8$ immediately following the news showing positive signs for the company’s future.
The exchanging of leadership hands comes at a critical point in Microsoft history, as investors have experienced loss after loss under current management and are shouting for a change. The decision of who will succeed the enthusiastic CEO is not one the company is taking lightly. The New Microsoft leader will need to have a smart combination of savvy business sense, fresh ideas and the ability to bring the company back up to his prior spot as the pioneer of technology.
It comes as no surprise that investors would be celebrating the decision as it has been forced to look to the company to redirect cash spent on failed projects and focus less on its highly profitable windows programming products. Microsoft (NASDAQ: MSFT) has lost over $3 billion on failed projects such as the Bing search engine and internet projects since 2010. This is combined with the over $6 billion dollar loss on the purchase of advertising agency aQuantive.
Other losses suffered under the current CEO’s rein include a $731 million dollar fine issued when Microsoft failed to offer a European choice of browsers with Windows 8. Less than impressive sales on the Surface tablet and even Windows 8 have left investors and employees alike screaming for change.
The new CEO will begin their journey with a difficult decision that could decide the fate of Microsoft. The newly appointed leader must choice to either continue forward with Ballmer’s plans of transforming the company into broad band services and devices or stick to the tried and true guns of its profitable business software.
Investors will most likely put the pressure on the CEO for bigger buybacks of stock and larger dividends to increase profits and raise share values for the company as well. The Microsoft company currently sits on what is estimated at an over $77 billion dollar cash horde, in spite of shares remaining flat for investors.