I received a significant amount of email, from our readers, on my recent editorial: Why Do Investors Want Alan Mulally? (Hint: He Sold Off Major Ford Assets)
While many of you agreed with what I had to say, some accused me of over-analyzing the situation and engaging in conspiracy theories. Well today our good buddy Paul Thurrott has published an article in which he indicated he would like to see Ford CEO Alan Mulally become CEO of Microsoft and sell or spin-off the Xbox and Online Services Division. Thurrott writes:
Microsoft, let Alan Mulally gut this company and start over. Review the strategy, shed businesses that don’t make sense.
Quick sidebar. Which businesses should Microsoft shed? [...]
There are two. Kind of like Oldsmobile and Pontiac and you’re a car fan who understands history.
They are Online Services and Xbox.
Xbox – Several billion dollars lost in R&D on Xbox and Xbox 360, each, never recovered. $1 billion warranty bill for the most unreliable consumer electronics product ever produced.
Online services – $17 billion in Bing losses in 10 years. $6 billion aQuantive write-off.
Spin these businesses off.
I wholeheartedly disagree with Thurrott and I’ll explain my reasoning in a follow-up post. Feel free to contact me at surilamin *@* live (dot) com