Microsoft Names Satya Nadella as CEO
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Microsoft Board Names Satya Nadella as CEO - WSJ.com 2/4/14, 10:41 AM
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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.
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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.
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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
Ballmer Era, by the Numbers
The company kicked off the current fiscal year by
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
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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
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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 john.kell@wsj.com and Shira Ovide at shira.ovide@wsj.com
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