Feeds

Ballmer: Time up for 'stuck in the past' Microsoft CEO?

Skype was not the answer

Intelligent flash storage arrays

Saved by the Bill, for now

He's also more than some anonymous portfolio jockey or every day stock analyst: Einhorn is feted as the person who rumbled Lehman Bros as being under-capitalized and over exposed.

Is the clock finally ticking on Ballmer?

Earlier this year, the FT reported rumblings on Microsoft's board about Ballmer's leadership. "He is coming under greater pressure [from the board] to raise the company's game," the FT claimed.

Only, it seems, Skype wasn't what the board exactly had in mind and it took Bill Gates, a fellow board member, to swing for Ballmer and help convince the others to approve the deal. Gates' comments reveal Ballmer was alone on the board over Skype, and that it took the considerable influence of Gates to sway people.

Until Skype, Ballmer was reasonably safe. While the stock's not going north, he is CEO of a company that makes more than $60bn a year. At $8.5bn and with a board clearly not 100 per cent behind Skype, Ballmer's now out on an even bigger limb than before when he didn't buy Yahoo! and when he laughed off Apple's iPhone that Microsoft is now trying to copy.

"Spending $8.5bn in cash on a loss making web telco based on a theory of making money will be Ballmer's last role of the dice"

With an online business stuck in the red and with Microsoft spending billions just to catch up in search and on mobile phones, $8.5bn in cash punted on a loss making web telco based on a theory of making money will be Ballmer's last role of the dice.

That said, Einhorn's comments at this stage are more annoyance than problem. Greenlight holds just nine million shares in Microsoft, or 0.11 per cent of outstanding stock, according to Thomson Reuters, a fact that means Greenlight lacks the power to actually oust Ballmer should it wish to.

At Sun Microsystems, when Southeastern Asset Management decided it was time for a change, it increased its ownership stake from 17 per cent to 22 per cent, to become Sun's single biggest shareholder. From there, Southeastern secured the appointment of two new board members to the old 11-man board, and shortly after Sun was put up for sale.

Greenlight could also become active: it could rally other disgruntled shareholders – of which there are many – and they or Greenlight could mobilize to increase their share ownership to force the changes they want – just like Southeastern Asset Management at Sun.

Potential allies are waiting in the wings. The Crandrea Group had attempted a grassroots shareholder activism movement before but that came to nothing. According to Crandera, it's not given up. "We have been engaged in other projects that have consumed time and attention," it said. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.