Ballmer’s Departure Anouncement Increases Microsoft’s Market Cap by $20B

by Radu Tyrsina
Radu Tyrsina
Radu Tyrsina
CEO & Founder
Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time). For most of the kids of... read more
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Steve Ballmer, currently 57, has become Microsoft’s CEO on January, 2000, after working in the company for more than 20 years. He has recently announced, on August 23, that he will step down from his position twelve months from now, on August 23, 2014. Even if there is still an entire year until Ballmer will officially leave Microsoft, investors in Microsoft’s stock are apparently pleased with the announcement, as Microsoft’s share have leaped by as much as nine percent, which translates into a market capitalization of 289 billion dollars, up from 269 billion dollars.

ballmer retires microsoft stock goes up

At the latest earnings conference call, Microsoft has disappointed investors, especially because of company’s slow adjustment to the booming mobile market. Back then, Ballmer himself had admitted that the company has built way too many Surface RT tablets (which they subsequently had to discount, the Pro version, as well) and was also disappointed by slow sales of Windows, probably referring to Windows 8.

Ballmer leaves, MSFT stock goes up

One of the latest causes that made so many consider Ballmer isn’t doing a wonderful job at Microsoft’s helm is the pitiful effect Windows RT has had on the market, making such important OEMs as ASUS quit their plans on making Windows RT tablets. Recently, Acer has also announced that they are going to shift their focus from Windows to Android and Chromebooks.

microsoft stock ballmer retires

Those of you that took our advice and invested in Microsoft’s stock right after its steep decline are probably grateful now, since Microsoft’s stock has seen a significant leap after Ballmer’s announcement of retirement. As the start for Microsoft’s next CEO has already started, some crazy voices are suggest even infamous Steven Sinofsky could be on the cards, after being basically obliged by Microsoft not to work at its rivals for as much as an entire year.

As a fun side fact, you should know that Microsoft’s market capitalization, at the moment when Steve Ballmer took its helm, was at six hundred billions and it will probably be half of that when he will leave the company. Of course, Microsoft isn’t the single company that has had to suffer greatly, but again, this was a fun side-fact.

Also, his own announcement might have just made mister Ballmer richer by almost one billion dollars, as he himself has a whopping amount of 333,252,990 shares.

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