Microsoft's CEO Dismisses Idea to Split Up the Company

From X-bit Labs: Even though an analyst back in October said that it would make sense to split up Microsoft Corp. into several companies targeting different markets to "unlock the hidden value", the world's largest software developer does not have such plans.

"I obviously don't think it is time for a break up," said Steve Ballmer, chief executive officer of Microsoft, who has run the company for the past ten years, during a meeting with investors, reports the Wall Street Journal.

In early October an analyst with Goldman Sachs indicated that it made sense to split up Microsoft into at least two parts. One would manage the Xbox and other consumer businesses, whereas the other was supposed to act on the market of software and hardware for businesses. Given mixed financial results of Microsoft, the "proposal" is not completely illogical.

At present Microsoft is at risk given the turmoil on the market, uncertain sales of its software on emerging markets and other factors. However, what should be kept in mind is that Microsoft Windows is used by both consumers and businesses whereas companies like Apple or Oracle have rather very distinct clients.

Steve Ballmer did not that many of Microsoft's products, including Windows and the Office suite, are sold to both consumers and corporations. Moreover, Bill Gates, the chairman of Microsoft, noted that there was a lot of synergy between different divisions of Microsoft.

Microsoft is indeed finding it hard to compete against companies like Apple and Google in certain areas, which is why analysts and shareholders are pretty angry on the software giant. Noteworthy thing, however, is that Microsoft operates in many different areas and on many different markets, whereas its competitors have much smaller global footprint.

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