15 January 2008

Could Microsoft be heading for a Split of a different kind?

Normally the faithful like to gather around the water coolers and offices on the Campuses around the Puget Sound and ponder a stock split. Actually since that hasn't happened in such a long time - many Microsofties have not even experienced the joy of a Stock Split.

However there is clearly a changing of the guard going on. With Bill leaving some time this year and Jeff Raikes announcing his retirement - we are seeing also a host of senior and middle level long time leaders leaving.

Perhaps it just isn't as much fun anymore.

However I believe there is another reason. With MSFT being so widely held it makes it very hard for there to be any major stock movement. Stock buybacks and other normal behaviour have done little to move the old stock clock needle of late.

I think the company is headed for a SPLIT. With the company being spun into 4 major divisions.

1. OS and Enterprise infrastructure services (aka Windows)
2. Desktop and Web Apps (aka Office)
3. Online Services (aka MSN)
4. Entertainment. (aka Xbox)

Some smaller businesses like MCS - Microsoft Consulting Services would be spun out along the way - but these are the biggies.

Steve - time to o it - it will realize a lot of shareholder equity and create competition for the marketplace.

The 4 businesses would generate significantly more market value that the core businesses do today.

Something to think about - eh Steve?

No comments:

Post a Comment