Microsoft (MSFT) Sinks as Clashes Lead to Ouster of Windows President
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Overnight, Microsoft (Nasdaq: MSFT) announced that its highly-regarded Window's President, Steven Sinofsky, will leave the company. Microsoft didn't give reasons for the departure, but many on the Street are speculating the changes are tied to clashes between Sinofsky and CEO Steve Ballmer.
Sinofsky, it should be noted, was considered an heir to Microsoft's leadership crown, and some are suggesting his ousting is a sign that Ballmer intends to remain CEO for several more year. Questions are also being raised about Sinofsky's ability to work well with others. Whatever the case, the timing of the departure is precarious considering Windows 8 just launched.
"No matter how some may want to view this event, we don't think Sinofsky's departure is a good thing," said analyst Jason Maynard of Wells Fargo.
"Sinofsky may have ruled the kingdom with an iron fist but he performed amazingly well in rescuing Windows following Vista. While we think Windows 8 and Surface have promise, there is still a ton of work ahead to catch iOS and Android. In our view this disruption is less than ideal and creates uncertainty," said Maynard.
On a positive note, Rick Sherlund, an analyst at Nomura, doesn't think the move reflects the success of Windows 8. While that may prove to be true, the departure lifts the veil on corporate politics at Microsoft, where jealous and toxic environments may have festered for years. It is not a pretty thought.
Investors in Microsoft are voting with their feet, sending the stock down 4.4 percent in pre-open trade.
Sinofsky, it should be noted, was considered an heir to Microsoft's leadership crown, and some are suggesting his ousting is a sign that Ballmer intends to remain CEO for several more year. Questions are also being raised about Sinofsky's ability to work well with others. Whatever the case, the timing of the departure is precarious considering Windows 8 just launched.
"No matter how some may want to view this event, we don't think Sinofsky's departure is a good thing," said analyst Jason Maynard of Wells Fargo.
"Sinofsky may have ruled the kingdom with an iron fist but he performed amazingly well in rescuing Windows following Vista. While we think Windows 8 and Surface have promise, there is still a ton of work ahead to catch iOS and Android. In our view this disruption is less than ideal and creates uncertainty," said Maynard.
On a positive note, Rick Sherlund, an analyst at Nomura, doesn't think the move reflects the success of Windows 8. While that may prove to be true, the departure lifts the veil on corporate politics at Microsoft, where jealous and toxic environments may have festered for years. It is not a pretty thought.
Investors in Microsoft are voting with their feet, sending the stock down 4.4 percent in pre-open trade.
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