Microsoft's New Management: Too Little, Too Late?

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July 11 (Bloomberg) -- Microsoft, playing catch-up in mobile computing, is reorganizing into fewer units and shuffling senior management roles to speed development of hardware and Web-based services. Paul Kedrosky speaks with Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg)

To say about that.

We will have the story in a couple of minutes.

Speaking of retailers, what do you think -- you and others -- about the job eddie lampert has done at sears?

Sears shares plunged 64 four percent since the hedge fund manager took over the chain.

"bloomberg businessweek" is taking a look at the infighting.

An illuminating piece into his management style and how he runs his business perhaps like a hedge fund.

But first, microsoft.

The long-awaited shakeup within microsoft finally here.

The company will restructure its operations and moving around top executives.

Let's bring on paul kedrosky, former equity analyst who covers the technology space.

We finally have the details on steve ballmer's a long rumored.

Any surprises?

"market makers -- not really.

It is pretty much what we talked about earlier.

There was something on bloomberg lace last week tipping off most of the structural changes.

The we will end up is kind of the rationalization of the "game of thrones" structure where there were warning fiefdoms rationalize down tofour and a little restructuring in nonproduct groups.

But the whole idea was simplification.

Quite honestly, i do not think too much is a surprise.

The only thing that kind of baffled me a little bit is when you read the release part way through, steve ballmer concedes it all may change because he has not actually talked about it with everybody who is going to be involved, which i find a remarkable statement in the stage of what was supposed to be a pretty widespread reengineering.

One of the questions we raised with jon erlichman is whether this would quiet any of the calls for steve ballmer himself to be reorganize out of a job.

Sort of the head of all the great families.

I think it is part of the reason why the stock is up this morning.

It is not because this is a particularly revelatory move, it is exactly what people expect.

In fact, kind of a move to an older style microsoft structure.

But many investors see it as kind of a closing hurrah of the steve ballmer era at microsoft.

He is elevating julie larson green which many see as the successor -- and there are other candidates.

Maybe this is one of the last things we see from ballmer and he is putting his pieces together for eventual exit.

I think this is one of his last major moves.

If you want to be on the mystic about the company, that is one of the reasons to be optimistic.

Not because it suddenly makes them lean, mean, and competitive.

Let's talk about what it means for the future in the changing landscape.

Pc sales had a fifth straight quarter of declines, record losing streak.

How does this set of microsoft to tap into mobile computing, where the future is?

The idea behind all of this is this one microsoft notion which always makes me think i should be singing a u2 songs.

Don't make me think.

Devices and services.

Devices is really getting around the idea of the company being pc-set point -- centric.

Whatever running applications on.

That is their plan on mobile.

On the flip side, they recognize the other major thrust is on services, which is all the cloud-based services which they, along with everyone else, recognizes future.

The intent here is is to make them less visibly reliant on windows as a pc platform and more reliant on windows as an enabler of cloud services on the one hand and a mobile on the other.

That is the right thing to do.

Just not obvious they had enough traction in either to warrant a lot of excitement about it.

We have known about this shakeup for about 6 million -- six weeks.

Perhaps the leak, if that is what it was, came earlier.

Because -- left for zynga before he could be installed in a new position.

What is the value of floating a trial balloon?

Why doesn't steve ballmer do what he sees his right and announced the shakeup and let the react?

This is probably for shareholders.

Steve ballmer has been under a lot of pressure to come up with more restructure in a strategy to get people excited.

Either turning it to a true growth story or dividend cash flow story, but straddling both and hoping it satisfies investors is always a loser strategy.

I think floating this and saying we are going back to more functional structure, taking all of these president of these divisions and turning them into executive vice president, rash ration i -- or rationalizing it.

Are you excited?

To the recent share price performance, people like the idea that is -- it is the right emphasis.

As i said, though, the disappointing thing is despite having had all this time and the trial balloon, it is clear from the release this is not been widely discussed at the highest levels of the company, so it would not surprise me to see more departures before all of it shakes out before the end of the year.

Paul kedrosky, always good to talk to you.

Bloomberg contributing u editor.

Saying2 -- u2, erik did biggie smalls.

John malone is hungry for more investors.

He will like to see more players from the cable industry consolidate.

Our senior west coast jon erlichman spoke with him at a conference in sun valley, idaho.

I want to know if weather malone himself said whether he would be doing any of the consolidating, as many expect.


He has been leading the headlines.

A lot of people have seen the bloomberg news reporting on his urging of and time warner cable to get together.

Through his stakes in a lot of the cable companies, he was able to use his muscle a little bit.

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


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