Microsoft Activists Target Gates’ Power in Reboot

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Nov. 19 (Bloomberg) -- Bloomberg deal reporter Cristina Alesci discusses activist investors ValueAct as they target the power Microsoft founder Bill Gates holds within the company. She speaks on Bloomberg Television’s “Market Makers.”

His walking papers.

What is next for the gates -- bill gates?

You have a relatively small activist.

They are making a big impact.

The biggest impact has been ballmer's head.

The attention will shift to gates, the chairman of the company.

He's a big shareholder as well.

What these activists have an issue with is that he has so much power but is not involved on a daily basis.

They think there is a governance issue here and more importantly, this small activist is gaining traction with the long-term investors in the stock.

That is why they have been so successful.

I have to say, i am hearing that gates is a much tougher target to take out and at the end of the day -- you are in the house of gates here.

Your xing popular sentiment arise against gates.

Bank of america came out that there is some optimism about this company if they bring in an external candidate.

If they don't bring in an external candidate and they leave gates as chairman, forget about the cash being returned because he is not going to want to sell xbox, he is not going to want to sell the online businesses, he is not going to want to sell devices.

It means you will not have a breakup flight.

Hang on a second.

It is no longer steve ballmer's fault?

It is bill gates' fault?

Investors see it as both of their faults.

The company signed an agreement.

Value at the cited that it would stand still and not advocate.

Here's the thing, the day after they reach that agreement where value act couldn't do anything, microsoft announces the nokia deal.

They tied the hands of the activist shareholders.

They don't like that.

They don't like to see you flying in the face the day after you tie their hands behind their back.

Rough justice.

I don't know what to call it.

What we know about value act?

They do not like to start proxy fights.

They like to be the friendly investor.

Select the company and the ceo to go ahead and spin the story however they want to spin it.

They want to stay in the background.

They figure that that is more valuable at the end of the day if they seem to be friendly with management may be other managers will take them seriously when they get into the stock.

The bottom line is that there are elements within value act who think that the company should be more aggressive, more along the lines of carl icahn.

They want to be more than the

This text has been automatically generated. It may not be 100% accurate.


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