ValueAct Capital, one of the newest investors in Microsoft, may have been quiet these past few months, but the investment firm is believed to be one of the main forces behind CEO Steve Ballmer’s departure.
In actuality, it is the founder Jeffrey Ubben who is said to be the main factor why Microsoft is looking for a new CEO. But now the investment firm has once again praised Redmond for its new direction — while claiming that other technology companies have a lot to do to catch up with Microsoft.
Ubben believes that Microsoft’s strategy of charging more money for its products (licensing fees and tablet hardware, for instance) compared to its hardware partners is the right way forward.
This not only keeps the OEM partners happy but also gives a boost to Microsoft’s revenues.
Talking to CNN Money, Jeffrey said that Microsoft is actually doing a lot better than competitors like Apple and Samsung as they focus on end users primarily, which means that both companies have to release new products on a regular basis:
“They have to run faster every year to keep up.”
Microsoft, on the other hand, according to the ValueAct founder, also emphasizes the business market. It signs contracts with enterprises that last years — ensuring that Redmond’s profits stay steady.
ValueAct, as you may recall, purchased a $2 billion stake in Microsoft earlier this year.
And even though the firm outright denied any intentions to get involved in the daily business of the technology titan, some very significant changes have been introduced in Redmond after the deal was completed. In fact, many now believe ValueAct is now actively seeking a seat on Microsoft’s board.
A cooperation agreement was signed between both parties a few weeks back, whereby Microsoft offered Mason Morfit, the president of ValueAct Capital an option of joining the board.