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So Microsoft CEO Steve Ballmer announcing a restructuring at the tech giant shares of Microsoft right now up about 2%.
Speaking of vision and coherence and outlining a new organization with four main engineering units is key parts of the new set up.
Sales is the managing director at analyst at UBS joins us now with more what this means for Microsoft and its investors -- so nice to have you join us today -- about the investment implications shares are up 2% can you attribute that to news of the restructuring.
Is this a good move by Microsoft.
I don't think the restrictions cause the news in the stock I think it's effectively shareholder activism.
As -- the market's been trending higher investors have been seeking you know safer stories that lower multiples of Microsoft does have a played with a lower multiple for quite some time so we think finally.
On Microsoft's multiples giving the credit it deserves and you know if you can get to 330 in earnings a year out from now on and -- -- -- multiple on Microsoft.
You know we think the stock to be a forty dollar stock.
Are not so I think that.
And 130% already that he made the Riordan has little to do with the stock -- today so the question of things are going so well in your view why do this for your White House now.
Microsoft's been a little stale they need to -- freshen things up so we think that this re org is a needed move they need to.
Align themselves -- on that where the technology Izturis going right that's from the clouds from mobility.
These have been areas that Microsoft is effectively been somewhat late to the game.
We think behind the scenes that they're focused but this is the right move we spoke to the C -- fill this morning a Microsoft.
This really has nothing to do with the go to market.
That's more to do with the divisional -- so there's no near term revenue or earnings energy or long term we do think it could be helpful.
And I think obviously Steve Ballmer spent -- some pressure -- -- missing some -- chefs and I think this is a move that they need to do but it's a longer term financial impact it won't mention.
-- -- -- -- This new set up.
Gives him more power right there's always been a question of heir apparent and that actually becomes an even bigger question now would you agree.
I think that Steve has just as much power -- once had he's had a material contribution to Microsoft for -- -- years.
Yes they've missed areas like mobile but they have an incredible enterprise business thank Steve is.
-- driven all a lot of out alongside a lot of than 90000 plus employees and Microsoft have been focused on this so.
You know -- you can't do everything right this is clearly one area Wall Street's focus on our -- of -- mobility.
And I think that they understand that you know they're not ignoring that 100 Wall Street eyes not focused on.
Yeah it's tennis in the consumer business has been that the -- that they've been week they've been very strong and an unimpressive they can get the consumer business.
Up to the scene -- cruise altitude as the it enterprise business I think you know you can even drive -- stock.
I'm -- -- on some theories about the relationship between Steve -- and Alan Mulally the CEO -- obviously he's very keen on turnarounds.
I think I I mean because I know Mulally consulted on this correct.
I don't know the full details that -- thing is fairly well known that Steve's father works it in now auto industry and I think he's had a lot of it influence.
Honestly I -- I'm I'm assuming that -- consulted with the number of people -- industry that have had a lot of experience.
-- -- his network is brought I would assume that he's he contacts a lot of people that.
To get advice I know why what if I was CI Microsoft -- Alan Mulally certainly sticks out you know when -- reading in about the details and it's infection and how it came to be -- -- thank you.
For your time discussing Microsoft's.
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