Microsoft Co-Founder Paul Allen Believes Xbox And Bing Should Spin Out

Posted Nov 5, 2013

Microsoft Corporation co-founder Paul Allen believes that the gaming console Xbox and the search engine brand should spin out from the company in order to focus more on the business to business (B2B) operations.  Vulcan Capital chief investment analyst Paul Ghaffari manages Paul Allen’s stock in Microsoft and he is the one that offered this advice.  Below is an excerpt from the article about Allen’s opinions:

Microsoft?s next chief executive should consider spinning off consumer businesses including search advertising and the Xbox games console, according to the private investment vehicle of Microsoft co-founder Paul Allen.

Mr Allen, who started the company with Bill Gates in 1975 and still holds a $2bn stake, is ?intrigued and interested? by forthcoming changes, said Paul Ghaffari, who manages the tech investor?s $15bn fortune.

Microsoft’s enterprise business is one of the most successful divisions at the company while Bing is struggling to compete against Google.  The Microsoft Xbox console is still doing very well compared to other gaming platforms.

It is highly unlikely that Microsoft would spin off the Xbox and Bing search engine. The development of the Bing and Xbox resources heavily depends on Microsoft’s talent across the whole company.

[Source: FT]