[BITList] Ballmer to retire

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Good news for microsoft, but is it too late?

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Microsoft CEO Steve Ballmer to Retire Within 12 Months
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  By  a.. SAABIRA CHAUDHURI  a.. CONNECTMicrosoft Corp. MSFT +6.85% said Friday that longtime Chief Executive Steve Ballmer has decided to retire within the next 12 months, a move that comes a month after he unveiled a shift in focus for the tech giant.

Mr. Ballmer, who is 57 years old, will depart after a successor has been chosen. The company's board has appointed a special committee—including Chairman Bill Gates—that will consider both external and internal candidates.

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Microsoft CEO unveils the new Windows Phone 8 at Bill Graham Civic Auditorium on Oct. 29, 2012 in San Francisco, Calif.
Microsoft shares were up sharply in early trading.

Under Mr. Ballmer, Microsoft has endured years of investor criticism as the rise of mobile devices and Internet services eroded the influence of the personal computer-era kingpin. The company has responded to the pressures in a variety of ways already, including developing and selling its own tablet-style computer in competition with longtime partners.

"There is never a perfect time for this type of transition, but now is the right time," Mr. Ballmer said in a prepared statement.

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He added that while his "original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services company," Microsoft needs a CEO for the longer term and for the new direction.

The tech giant is working to become a different kind of company, known less for programs that people buy than for devices and services that require software. Microsoft has been squeezed by a shift in consumer and business spending to tablets and smartphones and away from PCs.

In a memo to Microsoft staff, Mr. Ballmer called the company that he joined in 1980 an "amazing place," saying he "committed 100 percent emotionally all the way."

He noted that Microsoft has grown from a $7.5 million company to nearly $78 billion since he joined, and has grown from employing just over 30 people to almost 100,000.

"I take this step in the best interests of the company I love," he said. "It is the thing outside of my family and closest friends that matters to me most.

Microsoft said the search committee will be chaired by lead independent board director John Thompson.

"The board is committed to the effective transformation of Microsoft to a successful devices and services company," Mr. Thompson said. "As this work continues, we are focused on selecting a new CEO to work with the company's senior leadership team to chart the company's course and execute on it in a highly competitive industry."

Microsoft, although vastly profitable, has been stymied in its efforts to adapt to a range of new computing platforms and approaches. Mr. Ballmer last month announced a sweeping reorganization of the company, which is aimed partly at increasing the company's momentum in tablets and smartphones.

At the time, industry insiders had said the move elevated the profile of some established players in Microsoft's management ranks, while pointing to no single front-runner to eventually succeed Mr. Ballmer.

Mr. Ballmer, who has spearheaded multiple major restructurings during his tenure, has led several Microsoft divisions, including operations, operating systems development, and sales and support. In July 1998, he was promoted to president, a role that gave him day-to-day responsibility for running Microsoft. He was named CEO in January 2000.

Last month, Microsoft reported that it took a $900 million charge on its high-profile Surface RT tablet, contributing to fourth-quarter results that sharply missed revenue and profit expectations.
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