What Does Ballmer's Departure Mean for Microsoft?

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Aug. 19 (Bloomberg) -- UBS's Brent Thill and Bloomberg's Cory Johnson discuss what Steve Ballmer stepping down as a member of Microsoft's board means for the future of the company. They speak with Trish Regan on "Street Smart." (Source: Bloomberg)

Departure from the board potentially mean for share prices?

The stock has gone up 39% since he left, so, clearly, steve had a great conjugation to the company, but to be fair, wall street wanted him to leave.

That has been clearly voted on the stock.

Nadella and amy hood have taken control.

Wall street likes these copilots.

If i want to fly on a large-cap technology plane, i want them driving it.

We are big fans of both of them.

Nadella is a talented engineer.

Amy is incredible with expenses and she is giving wall street what it wants.

The company got a little bloated and she is restoring it back to health.

We think ultimately you are seeing investors positively react to the changes they are making.

We are actually pretty excited about what they are doing.

As steve said, this is not going to be easy.

They have to make some hard moves.

A lot of the catalysts that drove the stock are now gone.

The next big catalyst everyone is looking for is a bigger buyback, now that the company is under new leadership.

Cory johnson, i asked yesterday whether or not he would stay on the board and he said, i am here today as a board member.

After the interview, i was speaking with our producer who was out there with us, and i said, it does not sound like he will be there long.

That was the impression that we both had as we walked away.

He was talking about his other obligations.

It sounds like he has a lot on his plate and maybe he just needed the clippers news to be the one that pushed this through and got him away from the board.

You ask the right question at the right time but he was not prepared to give you the right answer or even the truth, that he was leaving the board.

It makes you wonder about all the other times that he claimed to be excited about something.

It is interesting.

I wonder what this means for his shareholders.

He has a $15 billion stake.

When you talk about his responsibility, certainly, he needs to be thinking about diversification and maybe this signals that a big seller could be coming into the marketplace.

A very interesting point.

Every time this has come up, that he has a responsibility as a shareholder, that he intends to be a good shareholder.

You also heard him say that in the interview yesterday.

It seems as though he may be trying to indicate that he is not doing anything necessarily soon, but you bring up a good point.

That would be a pretty large sale.

We have seen far too many corporate leaders initiate buybacks when they are selling stock.

It is a close to seize the process.

We understand why they do it, but when a company is using corporate dollars to buy back shares and sell stock in the company, it is not the cleanest process.

If he leaves the company and the board, he is more free to do that.

It will be interesting to see how microsoft changes without him at the helm.

I thought it was interesting that you got him to talk about the layoffs and how that was satya's choice.

I would argue that the board was probably involved in a lot of the decisions, to keep nokia, xbox, to do lay-ups.

Those are the decisions that could not be made without the blessing of them.

He was pretty explicit that this was something, something that satya was responsible for, the board.

I did ask him whether it made sense for microsoft to look at potentially selling off some divisions.

Xbox, for example.

He came back and said you know what i would think of that echoes of what i did, indicating that he was about keeping the company together than apart.

With steve ballmer no longer on the board of directors, do you believe we might see a smaller, leaner microsoft in the future?


Amy hood has taken a hard line on expenses.

I was at the company a month ago and there was no food at the meeting and she told me that i could go to the food truck on the sidewalk.

This is not google where they are serving free lunches.

In terms of selling off, wall street talked about the surging xbox business.

Search is tightly ingrained, they will not sell that.

Xbox, i could see that as a division somewhere else with microsoft involved, but the problem is, i walk with my kids in the mall in california, and what lures them into the story is the xbox, not the windows phone.

I still believe that is the centerpiece for the living room and there is some buzz around

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


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