In a surprising move in the Microsoft investment seat, the company voted in an activist shareholder to the companies board. The director form ValueAct Capital Management LP is one of the largest shareholder of Microsoft stocks and presents an interesting future for Microsoft.
The move by the Microsoft board on Friday, gives Microsoft a new future in its board of directors within the company. This is the first time that the company had ever appointed a director not solely at its direction. This investor and business relationship poses interesting times ahead.
Board Announcement Not Involved In Ballmer Retirement
The announcement to bring in the director from ValueArt Capital was announced via a press release, and quickly denounced by Microsoft as something that had nothing to do with the recent Steve Ballmer retirement. They own less than 1% of the company, but that investor can bring a new prospective into the way that the company is viewing its desktop and mobile technology future.
Was Steve Ballmer Forced Out By Investors
This latest move by the Microsoft board questions the idea of whether Steve Ballmer was ousted by the board or not. In a quote, ValueAct stated that they played an indirect role in the retirement, but sees the value of the shareholders of Microsoft as the way of the future. The stock price of MSFT has floundered around in the past few years, and the future of Steve Ballmer to the stock price has always been a sticky point with investors.
ValueAct Owning 0.8% of Microsoft Currently
As of the latest disclosure, ValueAct owns 0.8% of Microsoft via its common shares, and had been talking with fellow shareholders about strategies for the company. The company manages $12 billion worth of Microsoft, and should have a voice in the future of the company as more of an advisory role versus a day to day role.
It’s a changing world in the tech sector, and the move to bring in an investor as a board member to Microsoft shows that currently. With Steve Ballmer retiring in 12 months, the company sees the investors as an important role of the company, and with this move is a move towards its future. Whether or not it works, is still unknown.