Recently there were a lot of rumors regarding Microsoft CEO, Steve Ballmer’s exit from the company. Many people thought that he left the firm with his own will but only few people know that Jeff Ubben of ValueAct, an activist investor pushed him to do so. Now, speculations predict his successor. Microsoft is unlikely to carry on with its existing status quo regardless of Ballmer’s successor.
Rumors say that there is a back door commitment going on between Microsoft board and Ubben. Microsoft is planning to provide the smallest of changes to Ubben to get ValueAct off their backs as it bought a $2 million shares in Microsoft.
If Microsoft has still got no plans to replace Ballmer, Ubben and the borad thinks that he will strive harder to get elected in the board in order to have a strong shareholder support at his back.
With the replacement of the current CEO, there will be an increased stock buyback which will have expanded support on Wall Street.
Microsoft should now give its success to its Online Services Division – including the Bing search engine – to Yahoo, which it planned to purchase in 2008 for $44.6 billion.
Rick Sherlund of Nomura has also talked about Facebook and Yahoo’s interest in buying Bing.
Yahoo has got the right to first refuse and then last offer buy out of Microsoft’s search services business or paid search utility business to an unaffiliated third buyer. This means that Facebook cannot get Bing from Microsoft unless Yahoo allows it to do so. It would be lucrative for Yahoo to get all the search businesses and Online Services Division from Microsoft itself.
The purchase of Bing by Yahoo will generate a $1 billion free cash flow for ValueAct, which it will be happy to see. The time has come for the Microsoft to hand over the keys of Bing to Yahoo, at last.
Microsoft is trying hard to get things in the right place as it is nearly unveiling its Xbox One gaming console.
The firm is rumored to launch its latest Xbox One console on November 8.
This announcement will give Microsoft a week earlier start as its rival Sony releases its high-end PlayStation 4 on November 15.