Only in the first week of his appointment as the new CEO of Microsoft, Satya Nadella seems to be challenged with major decisions.
According to a report by Washington Post, some of the shareholders at Microsoft are trying to get a vote in favor of killing Xbox, Surface and Bing.
Surprised? So are we.
The report says that at least two influential shareholders want the company to focus more on the enterprise software industry instead of consumer focused products like these. Their motivation behind wanting to get rid of the said products is that Microsoft should shelve less profitable ventures in favor of those that are not only their core areas but have been more profitable in comparison.
Even though the shareholders could be justified in their own point of view, Microsoft has already invested a shitload of money in these three products.
Furthermore, the long-term plans that have been held at the Redmond based company in the previous year outline a transformation towards devices and services. Letting go of Xbox, Surface and Bing services would eventually mean shelving the transformation.
It should also be of importance that Nadella has maintained a strong relationship with former CEO Steve Ballmer and Bill Gates himself. So it would be quite a surprising step if he moves away from their decisions so quickly after his appointment.
One of the key advocates of a more enterprise focused strategy at Microsoft is ValueAct Captial, a company that has recently purchased a hefty number of shares in Microsoft. Their representative Mason Morfit will be spearheading their concerns at Microsoft’s board meetings.
We know that Bill Gates will be acting as the technology advisor to Satya Nadella, that thought itself gave us hope about how the potential trouble could be avoided – hopefully.