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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