Microsoft Corporation (MSFT) Value Goes Up $18 Billion Following Ballmer’s Retirement News
When Microsoft Corporation (NASDAQ:MSFT) CEO Steve Ballmer announced that he would be retiring within the months, the company’s stock price went up. It closed 7% up (+$2.36) on Friday to $34.75. On Thursday, the company closed at $32.29. At 8.33 billion shares outstanding, that means that Ballmer’s retirement added $18.16 billion.
Ballmer owns 333,252,990 in Microsoft Corporation (NASDAQ:MSFT). At the $32.29 closing price on Thursday, Ballmer’s shares in the company was worth $10.794 billion. After the stock price went up, Ballmer’s stake became worth $11.563 billion. The stock price increase means that Ballmer’s ownership in the company increased $769 million.
Clearly investors are excited to see what is to come for the software giant.
Ballmer said that during his time as CEO, he was proud to be a significant part of the birth of intelligent personal computing. His biggest regret was Windows Vista.
One of Microsoft’s most recent flops is the Microsoft RT. The company recently wrote down $900 million worth of Surface RT inventory.
Ballmer became CEO of Microsoft in January 2000. His personal wealth is estimated to be at $15.2 billion, which gives him a rank of 19 on the Forbes 400. Steve Ballmer joined Microsoft on June 11, 1980 as the 30th employee. He was the first business manager hired by Gates.
During Ballmer’s 13 years as CEO, the company’s annual revenue went from $25 billion to $70 billion and net income increased 215% to $23 billion.
Unfortunately, Microsoft’s share price remained relatively unchanged since Ballmer was CEO. Hedge fund manager David Einhorn has been calling on Ballmer to step down since May 2012.
It is unknown who will be replacing Ballmer next year.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry