14 DAY TRIAL // Hedge fund manager David Einhorn, the one who publicly asked Microsoft CEO Steve Ballmer to leave the company two years ago, is back with more criticism for the Redmond-based tech giant.
This time, Einhorn has decided to dump his Microsoft stock, claiming that the company is shrinking and pointing to the same management team he also criticized in the past.
Furthermore, the hedge fund manager explained that Windows 8 is a disappointing product and the lack of innovation at Microsoft does nothing more than to accelerate the company's shrinking.
“In 2006 we compared Microsoft to A-Rod, which was a compliment at the time. In 2013, the comparison is still apt, but it is no longer a compliment. Windows 8 appears to be a flop, and a decade of mismanagement has put Microsoft at risk of becoming a shrinking company,” he said in a letter to partners.
“We were pleased when an activist gave the stock a boost, giving us the opportunity to exit with an annualized high single-digit return that slightly outpaced the market during our lengthy holding period.”
Microsoft hasn't yet issued a public response on this, but the company would most likely remain tight-lipped as things don't seem to get any better for CEO Steve Ballmer.
According to insiders, ValueAct Capital, an investing firm that recently purchased a large stake in Microsoft, is trying to get a board seat and thus be one of those deciding the company's future.
The problem is that the people behind ValueAct Capital don't seem to support Steve Ballmer, so in case they do manage to receive a seat in the company's board, the CEO might be again on thin ice.
In the meantime, Ballmer has pushed Microsoft into another major restructuring process supposed to put the focus on devices and services and thus get the company back on track in approximately one year.