Microsoft board preparing to name Nadella as CEO: Report

Bloomberg report, however, says the Nadella plan has still not been finalised

Seattle: Microsoft Corp's board is preparing to name internal executive Satya Nadella as the software company's next chief executive, Bloomberg reported on Thursday, citing unnamed sources.

Sources had previously told Reuters Microsoft was down to a "handful" of candidates, including Nadella, executive vice-president of the cloud and enterprise group, and Tony Bates, executive vice- president of business development, plus at least one external candidate.

Bloomberg added the Nadella plans had not been finalised.
Microsoft shares rose 0.8 per cent to $37.15 after hours, after gaining slightly in regular Nasdaq trading.

Nadella, a native of Hyderabad, India, was promoted to run Microsoft's fast-expanding internet-based computing initiative in July last year as part of current CEO Steve Ballmer's radical reorganisation of the company.

Before that he was in charge of Microsoft's growing server and tools business, following on from high-level roles in Microsoft's Office and Bing search engine units.

"He's a solid choice," offering continuity of strategy and proven execution, said Sid Parakh, an analyst at fund firm McAdams Wright Ragen.

Some investors had campaigned for an external CEO who might be more likely to shake up the company and reward shareholders with greater dividends and share buybacks, but Parakh said that did not mean Nadella would necessarily be unpopular with Wall Street.

"Any new CEO is going to have to have the shareholders' say in mind," said Parakh.

The appointment of a company veteran like Nadella, which follows a months-long search and long flirtation with outsiders such as Ford Motor Co Chief Executive Alan Mulally, could disappoint some investors who were hoping for a more radical transformation at the software giant.

FBR analyst Daniel Ives said in a research note: "We believe Mr Nadella's prior roles in the Online Services Division, Business Division, and most recently as president of the Server and Tools business position him as a strong internal candidate with a broad set of knowledge around Microsoft's massive product portfolio."

 

Source: msn