The world's largest software maker
) announced that ex-Chief Executive Officer (CEO) Steve Ballmer
resigned from its board.
The 58-year-old Ballmer retired from his position as the CEO
eight months ago ending his nearly 13 years' (Jan 2000 to Feb 2014)
career at Microsoft. Following his retirement, 46-year-old Satya
Nadella was named the new CEO.
Ballmer said that his departure would give him more to spend on
his recently acquired basketball team - Clippers - for $2
Ballmer took over the reins of the company as CEO in Jan 2000
when Microsoft was unable to keep pace with the changing technology
trends and generate growth. The company was facing stiff
competition from peers such as Apple Inc. (
), Google Inc. (
) and Facebook Inc. (
) in the areas of Internet search, smartphones and tablets. Also,
Ballmer's efforts to launch innovative products failed to reignite
the company's growth.
Nevertheless, revenues increased threefold during Ballmer's
tenure. He also introduced a series of functional and executive
changes to help the company gain traction in the fast-growing
mobile and cloud-computing markets.
Currently, Ballmer remains the biggest individual shareholder,
owning 333.3 million
worth $15 billion, according to data compiled by Bloomberg. Ballmer
plans to retain his stock and continue to offer feedback on
products and strategy.
Ballmer's departure did not have any major impact on the share
price which increased only 0.5% to $45.33. However, ever since he
stepped down as the CEO, Microsoft's shares have surged about
Ballmer's retirement has given the new CEO Nadella a free hand
to reshape and restore the company's position. It is yet to be seen
whether Nadella can ramp up the high-growth, high-margin service
operations and the highly competitive, low-margin but strategically
important devices business.
Currently, Microsoft has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
APPLE INC (AAPL): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis Report
GOOGLE INC-CL A (GOOGL): Free Stock Analysis
To read this article on Zacks.com click here.