14 DAY TRIAL // ValueAct Capital has once again praised Microsoft’s for its new direction, claiming that the other tech giants out there need to do better to keep up with Redmond.
Founder Jeffrey Ubben, who’s believed to be one of the key people behind Steve Ballmer’s departures, said that Microsoft’s strategy of charging more money for its product is the right choice, as the company can thus boost its revenues.
At the same time, Microsoft signed contracts with enterprises that will last for years and thus ensure the company’s profit on the short term.
That’s why Microsoft is actually doing a lot better than rivals Apple and Samsung, as they both focus on end users and need to release product updates on a regular basis.
"They have to run faster every year to keep up," he said according to CNN Money.
ValueAct Capital purchased a $2 billion (€1.5 billion) stake in Microsoft earlier this year and although the company denied any intentions to get involved in the tech giant’s business, significant changes have already been announced.
First of all, ValueAct Capital has asked for a seat in the company’s board, thus trying to make its voice heard among those who decide the future of the software maker.
The board of directors decided to sign a cooperation agreement with ValueAct in last August, with Mason Morfit, president of ValueAct Capital, to be given the option of joining the Microsoft board.
“Mason has extensive experience as a public company director, a wealth of financial knowledge and the perspective of a major shareholder. We have enjoyed getting to know Mason over the past few months and are looking forward to working with him,” said John Thompson, lead independent director and chair of Microsoft’s Governance and Nominating Committee.
Outgoing CEO Steve Ballmer has denied all rumors that his retirement might come under the pressure of ValueAct Capital, but rumor has it that the new investor did not agree with the direction the company was heading to.