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Microsoft Board Names Satya Nadella As CEO - WSJ.Com 2/4/14, 10:41 AM Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See a sample reprint in PDF Order a reprint of this article now format. TECHNOLOGY Microsoft Names Satya Nadella as CEO Bill Gates Leaves Chairman Post to Become Technology Adviser By JOHN KELL and SHIRA OVIDE Updated Feb. 4, 2014 9:44 a.m. ET Satya Nadella is seen in this undated Microsoft photograph released Feb. 4, 2014. REUTERS Microsoft Corp. has named company veteran Satya Nadella as its next chief executive, an appointment that comes as the software giant faces competition across all fronts of its business. http://online.wsj.com/news/articles/SB10001424052702304851104579362603637152172#printMode Page 1 of 5 Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM The company also said founder Bill Gates, who previously was chairman, moves to a new role on the board as technology adviser and will devote more time to the company, supporting Mr. Nadella in shaping technology and product direction. John Thompson, who was formerly the lead director, will become chairman. More Mr. Nadella's naming to the post, effective immediately, Previously: From India to Insider makes him the third CEO since the Redmond, Wash., Nadella Is a Safe Choice, With Edge company was founded in 1975. He succeeds Steve Ballmer, Nadella's First Email to Employees as CEO who in August announced his plans to retire. Mr. Ballmer Ballmer Email to Employees on New CEO was originally handed the reins in 2000 when founder and college friend Bill Gates stepped aside after 25 years. The appointment of Mr. Nadella, who is 46 years old and leads the Microsoft division that makes technology to run corporate computer servers and other back-end technology, will be considered a safe choice. He has signaled a desire for continuity, telling directors that, as CEO, he hopes to lean on Mr. Gates, according to several people familiar with the matter. Little in Mr. Nadella's public history at Microsoft suggests he will break from the company's pattern as a fast follower, rather than a trend setter. Satya Nadella REUTERS Mr. Nadella will also join the company's board, and Mr. Ballmer will remain a director as well. http://online.wsj.com/news/articles/SB10001424052702304851104579362603637152172#printMode Page 2 of 5 Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM Analysts at FBR Capital Markets called the appointment of Mr. Nadella a "safe pick" versus choosing an outsider. "As Microsoft continues down the right lane of the highway at 55 mph with its new CEO in hand, the fear among many investors is that other tech vendors from social, enterprise, mobile, and the tablet segments continue to easily speed by the company in the left lane of innovation and growth," the analysts said in a note. Ballmer on His Exit While Microsoft continues to churn out big profits, the company has missed potential growth areas as people and In a series of exclusive interviews, Microsoft's CEO told The Wall businesses shift more computing chores to the Web, tablets Street Journal how he came to and smartphones. believe he wasn't the best person to remake the technology giant for its next act. Microsoft is heavily dependent on a trio of products— Getty Images Windows, Microsoft Office and related software to run More on Microsoft's Future companies' back-end computing gear—that are deeply tied Microsoft on a New Path to the sales of Windows-powered PCs. Other well-known Job One: Fixing the Culture products, like the Bing search engine and the Xbox Why No New CEO Yet? videogame system, don't contribute as much to results. Finding Microsoft's New CEO The company kicked off the current fiscal year by Ballmer Era, by the Numbers Microsoft Nears End to Search announcing first- and second-quarter results that easily topped Wall Street's expectations. Analysts surveyed by Thomson Reuters are projecting full-year revenue to rise 7% for the period ended June 30, but the bottom line is expected to be roughly flat. Timeline: Microsoft Under Ballmer http://online.wsj.com/news/articles/SB10001424052702304851104579362603637152172#printMode Page 3 of 5 Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM From the Archives Photos: Ballmer's Product Hits and Misses Bios: Microsoft's Leadership Changes People who have worked with Mr. Nadella credit him with repairing technical glitches at Microsoft's Web- search service, disarming Silicon Valley technologists suspicious of the company and fostering collaboration in a turf-conscious workplace. Most of Mr. Nadella's experience is in serving corporate customers—the source of two-thirds of Microsoft profits—which suggests the company may want to double down in that area. He has been an leading internal champion of Microsoft's efforts to rent computing power to other companies, even though that business competes with some of Microsoft's most-profitable products. Microsoft previously indicated it would look both inside and outside the company for a replacement for Mr. Ballmer. Mr. Nadella, not only confronted by the pressures Microsoft faces in the tech space, will also need to work with Mr. Introducing WSJD, the Journal's new home for tech news, analysis and product reviews. Ballmer and Mr. Gates as the company looks toward its Attempting to Code the Human Brain future. Behind Facebook's Efforts to Charm Advertisers A handful of well-known candidates were rumored to be in How Lenovo Built a Chinese Tech Giant the running for the post. Ford Motor Co. 's CEO Alan Mulally Why Is It Hard to Memorialize Loved Ones' in early January said he wasn't taking the job. Lives Online? Others who at one time discussed the CEO job with Microsoft directors have included Nokia Corp. executive Stephen Elop, Oracle Corp. President Mark http://online.wsj.com/news/articles/SB10001424052702304851104579362603637152172#printMode Page 4 of 5 Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM Hurd, Pivotal Software Inc. CEO Paul Maritz and Microsoft executive Tony Bates. Ericsson CEO Hans Vestberg was also a rumored candidate. Write to John Kell at [email protected] and Shira Ovide at [email protected] Copyright 2013 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com http://online.wsj.com/news/articles/SB10001424052702304851104579362603637152172#printMode Page 5 of 5.
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