Report: ValueAct Demanding A Seat On Microsoft’s Board

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According to report from Reuters, members of Microsoft board have held talks with ValueAct Capital Management in the last week over the activist shareholder’s demands to have a seat on the Microsoft’s board. ValueAct owns 33 million Microsoft shares as of March, which is 0.4 percent of total outstanding shares of Microsoft in NASDAQ.

ValueAct wants to have control over Microsoft to make changes on how they adapt to the new world of mobile computing by having a board member.

Microsoft’s huge stock drop on Friday, prompted by its financial results and a $900 million write-down on the value of unsold Surface tablets, provoked fresh skepticism of Ballmer’s new plan to reshape Microsoft around devices and services.

“The recent reorganization does not fix the tablet or smartphone problem,” Nomura analyst Rick Sherlund said in a note to clients on Friday. “The devices opportunity just received a $900 million hardware write-off for Surface RT and investors may not even like the idea of wading deeper into this territory.”

ValueAct is thought to oppose Microsoft’s recent foray into making its own devices.

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Source: Reuters

  • Yuan Taizong

    The reorganization isn’t even done yet, people want things at the speed of light, things as this takes time, Ballmer’s vision needs to work out with time, it doesn’t work from one second to the other.

  • Joe_HTH

    Rick Sherlund, nobody gives a shit what you think or want. You’re only in this to make a quick buck. You couldn’t care less about Microsoft or it’s long term health.

  • Rikkirik

    Why is this news?? 0.4%??

  • FateStayNight

    This from the same guy that wants to chop microsoft to little pieces and sell them off. He’s not here to help with microsoft’s longterm viability, he’s here to chop it to little pieces and sell it piece by piece.

  • Bugbog

    This is just leveraging. If Microsoft is “tanking”, and has no strategic direction, why is ValueAct Purchasing more stock?

    This is just a means to getting their foot in the door! Even if Microsoft doesn’t have the stratospheric stock prices the other tech companies have, at least it has been stable for most of the last decade! (in the face of the economic downturn, and other tech companies fluctuating wildly!).

    So I say no! No go! Piss-off, and don’t come back for mo’! 😀

    • XboXer

      Because Value Act sees an opportunity to make some quick cash by breaking up the company and get rid of the money losers the divisions not because they think the company as a whole has much upside.

      The world has changed, Microsoft under Balmer has not, increasingly the company place is the world is becoming irrelevant:

      • Bugbog


        Maybe that’s why if all Microsoft products (new and old) were withdrawn
        from consumer/business use, most of the world economy would collapse?

        Maybe that’s why Microsoft has one of the best profit per revenue share of any of the major tech companies! hmmm!

        Your probable “heroes” don’t make the sorts of revenue that Microsoft does (excepting Apple);

        Samsung: $8B profit on $170+ billion revenue!

        Google? $2.3B profit on $14.1 Billion revenue!

        Irrelevant my A**! :) Just because they don’t currently tickle Your fancy won’t make them disappear any time soon, sorry.

        • XboXer

          Irrelevance and disappearing is two different matters.

          Relevance is about leading the industry, being a paramount factor for others to conciser, having direct influence went byond the industry itself as was the case with the Company in 80’s, 90’s and early 2000’s. MSFT was a 800 pound gorilla that anyone had to conciser when making decisions. Like GM in the 60s and 70s or US Steel in theearly century.

          And like those, MSFT will continue to make money, though increasingly will become harder and harder while their influence on the industry and the outside world will be inconsequential.

          So will MSFT disappear? Likely not but it will be much different and much less of what it appears now over the next years. Will politicians and competitors worry about the company like they once did, will companies line up to partner with it as they once did, will it be the place where the best and brightest choose to work like it once was, while the company be able to determine it’s own future like it once did?

          Sadly, no. It best days are behind it and so is it’s relevancy. Add diminished growth and profits soon follow diminished relevancy.

  • Tips_y

    I can’t help looking at ValueAct as a Trojan horse. It could be possible that it’s acting as a mole for other companies out to destroy MS or at least render it inutile. This is a billion-dollar industry after all so big bucks are involved!