Ballmer’s retirement announcement has caused Microsoft shares to rise throughout the day, but there is another piece of business one analyst believes ValueAct will be pushing once it claims a spot on Microsoft’s board of directors: the sale of the Xbox division.
Analyst Rick Sherlund believes ValueAct is looking to make some big changes at Microsoft to turn around what has been a bad year for the company. On July 19th, Microsoft shares closed at nearly 12% down, something that has not happened since 2000 to 2001. With Windows 8 and Surface tablet sales not living up to expectations, something needs to give.
Sherlund believes ValueAct will be making a move to sell off the company’s Xbox division once it claims a space on the board of directors, stating:
Had Ballmer not announced his retirement a mere day after ValueAct’s intentions were made public, this would be a tad less worrying.
Steve Ballmer will be retiring from his position as Microsoft CEO within the next 12 months, once a successor has been chosen.
