Microsoft CEO candidate Stephen Elop said to consider selling Xbox business

#1HeathenutopiaPosted 11/8/2013 5:07:51 AM
Bloomberg also suggests that Elop is willing to shut down or sell some major Microsoft businesses. Elop would reportedly considering killing off the company’s Bing search engine, while contemplating selling the Xbox business. Some investors and analysts have previously called for the software giant to split off its Xbox business and give up on search. Microsoft co-founder Paul Allen appears to feel the same way. Allen’s $15 billion asset manager, Paul Ghaffari, revealed recently that Bing and Xbox have been distractions for Microsoft. "My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud." Nomura analyst Rick Sherlund claims Microsoft’s financial earnings could be boosted by 40 percent in fiscal 2015 if the company sold its Bing and Xbox businesses.

Microsoft co-founder Paul Allen appears to feel the same way. Allen’s $15 billion asset manager, Paul Ghaffari, revealed recently that Bing and Xbox have been distractions for Microsoft. "My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud." Nomura analyst Rick Sherlund claims Microsoft’s financial earnings could be boosted by 40 percent in fiscal 2015 if the company sold its Bing and Xbox businesses.

Any sale of Bing or Xbox seems unlikely, despite continued suggestions over the years. Microsoft is moving to integrate its search engine experience directly into Windows 8.1 and Windows Phone, and the company is just weeks away from launching its next-generation Xbox One console. Bing also powers a number Xbox search and app features. Either way, Microsoft’s CEO search appears to be progressing with some suggesting the company may name a Ballmer successor by the end of the year.

http://www.theverge.com/2013/11/8/5080192/microsoft-ceo-candidate-stephen-elop-bing-xbox-rumors

I don't really see this happening with all the time and money spent developing the XI. But, the possibility is still there.
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#2chrish909Posted 11/8/2013 5:22:26 AM
http://www.macroaxis.com/invest/ratio/SNE--Probability-Of-Bankruptcy

sony has 47% of going bankrupt in 2 years.

http://www.psu.com/a021028/

Sony employee andrew house"sony cant fail anymore with ps4"

Apparently sony has been failing so much that they are at the brink and they cant handle another failure like ps3 and vita.

http://www.gamesindustry.biz/articles/2013-05-17-sony-break-up-would-spell-trouble-for-games

If sony avoids bankruptcy they will break sony up into divisions and the gaming division will suffer LOL.


I use to post links like these all the time but fanboys got butthurt. Should I make a topic about it on the ps4 board? You guys do realize the last time sony had a successful product was way back when with ps2.
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#3AsellusPosted 11/8/2013 5:23:42 AM
I don't know, I could certainly see it happening. Neither X-Box really turned a profit for MS and this bit came out recently--

http://www.businessinsider.com/microsoft-earns-2-billion-per-year-from-android-patent-royalties-2013-11

-- seeming to indicate that MS has been hiding just how much money they've been bleeding from it.
#4EoinPosted 11/8/2013 5:25:26 AM
Microsoft's "CEO search" probably isn't really a search at all. It is probably a matter of them waiting for the finalisation of the Nokia purchase, with Elop probably being named CEO within a month or two of that happening.

Heathenutopia posted...
I don't really see this happening with all the time and money spent developing the XI. But, the possibility is still there.

I think there's a good chance of something like that happening. I think that there is a near-100% chance of some major Microsoft product being spun off if Elop becomes CEO, with a chance approaching 50% that it's the Xbox. It's a typical "new CEO"-type action - it makes a new CEO look more like a CEO, it allows them to talk about "refocusing" and outline some vague future vision, it gets a big pile of cash that goes onto the books for that year and makes a CEO's first first year look like a success, and share prices rise as a result of that pile of cash adding to profits.

While I think that it would be a mistake for Microsoft to offload the Xbox division, in context, it's not actually that important to Microsoft. They are fighting a tough battle in a market that they don't need to be in and I think that if they could find a buyer for the platform but still be able to provide the OS and the services, they'd be quite tempted by that.
#51nternationa7Posted 11/8/2013 5:27:59 AM
Fine by me. If both Sony and Microsoft disappear, maybe we can finally end all this console nonsense and have everyone on steambox and nintendo.
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#6EoinPosted 11/8/2013 5:31:33 AM
1nternationa7 posted...
Fine by me. If both Sony and Microsoft disappear, maybe we can finally end all this console nonsense and have everyone on steambox and nintendo.

If Microsoft sells the business, it doesn't magically disappear. It gets taken over by someone else and things stay almost entirely the same.
#7AsellusPosted 11/8/2013 5:33:25 AM
If Microsoft sells the business, it doesn't magically disappear. It gets taken over by someone else and things stay almost entirely the same.

I don't know about that, hard to imagine either the general public or developers just taking it in stride if it becomes the Samsung X-Box or what have you.
#8krillensPosted 11/8/2013 5:35:36 AM
chrish909 posted...
http://www.macroaxis.com/invest/ratio/SNE--Probability-Of-Bankruptcy

sony has 47% of going bankrupt in 2 years.

http://www.psu.com/a021028/

Sony employee andrew house"sony cant fail anymore with ps4"

Apparently sony has been failing so much that they are at the brink and they cant handle another failure like ps3 and vita.

http://www.gamesindustry.biz/articles/2013-05-17-sony-break-up-would-spell-trouble-for-games

If sony avoids bankruptcy they will break sony up into divisions and the gaming division will suffer LOL.


I use to post links like these all the time but fanboys got butthurt. Should I make a topic about it on the ps4 board? You guys do realize the last time sony had a successful product was way back when with ps2.


link says 18%
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#9EternalDividePosted 11/8/2013 5:40:20 AM
Well supposedly the original Xbox and 360 only lost money for them in the long run and X1 is shaping up to be the same if not worse right out the door thanks to all the bs they caused with it. At least the other two didn't have negative word of mouth going into it. X1 is like the complete opposite.

It could happen. If it did I wonder who would buy it. I bet some Chinese company. But my money's on one of those corporate slight of hand moves where they offload it onto one of their subsidiaries. Where they still own it and decide what to do with it but they don't "own" it in the legal sense so if things go bad it's company xxx that goes under and not M$. To the tune of a big tax write off for M$ if that were to happen I'm sure.
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#10Spetsnaz420Posted 11/8/2013 5:40:21 AM
I'd have no problem with another company running Xbox
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