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Breakingviews: Microsoft’s future

Friday, Aug 23, 2013 - 03:20

Aug. 23 - Richard Beales and Robert Cyran discuss why CEO Steve Ballmer’s announcement he will retire sometime in the next year had investors cheering.

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It's good news we've been waiting for for at least ten years. Steeple of Microsoft CEO is going to be retiring sometime in the next twelve months surfaced in the market like it. In the market loved it let's put it that way this has been a sad really annoying habit that is if you step down and in your company's value increased between billion and the entire market index shoot I mean that the threat that's that's what heaven knows that happens that means steeple was there and says it was an alien. But yeah if he gets a billion dollars by resigning it's not you know it's not that as a -- -- Haley says the story is it's been awhile since -- so it was really creating anything that really worked to limit the school -- Position and operating systems for the fiscal computers and all the rest of it but. Melissa avenue Detroit seems to -- -- Huge monopoly profits off -- windows and out of office offer her -- well over a decade. The problem is you know they've returned they've returned quite a bit Cheryl has that they've also just -- -- huge -- and chasing hearing from Xbox online search to. Buying online advertising -- like equality took six billion dollar rate -- recently right. Com and making and you know keep on trying Ehrlich a hidden our new strategy is going to be and we need to have the -- and -- even on devices that the famous -- was -- which also brought it a model something and then in the Internet tablet. Then they got -- new tablet out which surface which they just like he -- and that's -- -- into the -- and -- yeah exactly. So the promise to keep on trying these new efforts they keep on saying this this one's gonna work on the promise they never do and for shareholders and see this playing you know for decades they're saying okay. Let's finally you know change that's -- it seems like the pressure is finally got to Microsoft to mean. They say okay there's not any change in strategy -- bombers came here. But if you -- a press release at -- bit it's a bit chilly. Let's put it that it's not the only woman that enabled and it's also yet also -- that of the people upon picking his successor. Steve Ballmer is not on the committee that's picking a successor. That suggests is influences can be relatively limited that is so what's -- -- -- -- -- adult wolf first to swing very easy by just saying okay what does Microsoft could have let's focus on that. So that's enterprise software to do very well and they make a lot of profit that doesn't mean there -- new things they can do that will work -- anything -- mean that you know perhaps in the future that Microsoft will eventually shut down. But in the meantime they can get those profits and trained journalist. That means getting rid of something like being you know they could possibly solid off charges such as search engine -- online services business has like lost money for almost a decade consistently. For Xbox I mean it's not profitable but they they waste a lot of money getting to that position. They could sell that business perhaps to somewhat and that would also and what that leases by doing -- shutting down these businesses. Virtual becomes a lot easier to manage because Microsoft right announcement very complicated we sort of people was closed restructuring that has been -- it's so complicated it. Practically impossible to understand what the company does what they want to do. You simplify company makes it easier to run it and so that means that these incidents successor it also means that you would they stop wasting capital means more money for shareholders Charles and all of that. -- we'll leave that we'll be looking for a streamlined simple. Political Microsoft in the next year also we'll -- -- breaking news for you on the --

Breakingviews: Microsoft’s future

Friday, Aug 23, 2013 - 03:20

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