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Microsoft Corp.

Microsoft's Steve Ballmer Promoted to President; Bill Gates to Focus on Long-term Strategy

Strategic Insights

— 1 min read

Microsoft Corporation Chairman Bill Gates has promoted Steve Ballmer to president, solidifying his role as the heir apparent to day-to-day management of the software giant. Ballmer, a longtime friend of Gates from their days at Harvard University, has been heading Microsoft's sales and marketing efforts. Gates, who will continue as chairman and chief executive officer, will focus on the company's long-term future and new product development. Meanwhile, in a separate move, Seagate Technology Inc.'s board has fired Chairman and Chief Executive Alan Shugart, replacing him with President Stephen Luczo.

Key Takeaways:

  • Steve Ballmer, 42, has been promoted to president of Microsoft Corporation, solidifying his role as heir apparent to day-to-day management.
  • Bill Gates will continue as chairman and chief executive officer, focusing on the company's long-term future and new product development.
  • Gates will be less involved in day-to-day operations, but will maintain influence over the company's strategic direction.
  • Microsoft's stock has increased by 75% year-to-date, but closed down $4.18 3/4 at $112.81 1/4 following the promotion.
  • Former McKinley Capital Management portfolio manager Bill O'Hearn views Ballmer as "definitely perceived as the heir-apparent."
  • Seagate Technology Inc.'s board has fired Chairman and Chief Executive Alan Shugart, replacing him with President Stephen Luczo.
  • Luczo, a former investment banker at Bear, Stearns & Co., plans to sell a stake in Seagate Software through an initial public offering and accelerate drive production.

Statistics:

  • Microsoft's stock is up 75% year-to-date.
  • Microsoft's stock closed at $112.81 1/4.
  • Seagate Technology Inc.'s stock closed at $24.18 3/4.
  • Steve Ballmer is 42 years old.
  • Bill Gates is 42 years old.
  • Stephen Luczo is 41 years old.
  • Alan Shugart is 67 years old.

Sources:

  • "Bill Gates Steps Back as Microsoft CEO, Promotes Steve Ballmer" (Source: The Wall Street Journal, March 13, 2000)

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