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Investor to Microsoft: Ditch 'Charlie Brown' Ballmer

David Einhorn calls for Steve Ballmer's head

By Kevin Spak,  Newser Staff

Posted May 26, 2011 8:58 AM CDT

(Newser) – Big-time hedge fund manager David Einhorn called for Steve Ballmer’s head yesterday, saying Microsoft suffered from “Charlie Brown management.” Einhorn’s Greenlight Capital has been snapping up Microsoft shares, which, he told the Ira Sohn Investment Conference, are at a “remarkable discount” because of Ballmer’s continued presence. “It’s time for Microsoft to tell Steve Ballmer, ‘All right, we see what you can do, let’s give so-and-so a chance,’” he said, according to Bloomberg.

Microsoft shares climbed 0.87% in after-hours trading following the remarks, according to Reuters. The stock has underperformed the S&P 500 for four of the past five quarters. But Einhorn says it’s simply “not getting credit for its achievements and prospects,” noting that its earnings per share have doubled since 2006. Ballmer owns 4% of Microsoft, making him its second-largest shareholder, behind only Bill Gates. Einhohrn, meanwhile, is busy today buying a minority stake in the debt-ridden Mets.

Microsoft CEO Steve Ballmer speaks during the CII Cloud Summit in New Delhi, India, Thursday, May 26, 2011.
Microsoft CEO Steve Ballmer speaks during the CII Cloud Summit in New Delhi, India, Thursday, May 26, 2011.   (AP Photo/Gurinder Osan)
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COMMENTS
Showing 3 of 5 comments
njguy54
May 26, 2011 12:05 PM CDT
Microsoft got where the are not by building better software, but by undercutting their competitors on price.  Currently, they're way behind on the mobile space, which is the main area of growth.  The only way they can hope to trump Apple in mobile is to develop a mobile version of Windows that could be sold on a tablet for under $100... but that will only work until Apple (once again) redefines the computing landscape with a new i-something-or-other.  And how can they compete with Google, whose Android is open source?
Reader68307102
May 26, 2011 11:00 AM CDT
RICO charges for Einhorn.
Dave99
May 26, 2011 9:24 AM CDT
Ditch their shitty software . Man do they build a bunch of crap.

 
Microsoft • hedge fund • Steve Ballmer • David Einhorn • hedge fund manager

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