Stock market reacts positively to Microsoft reorganization

Microsoft's much rumored corporate reorganization was made official today, and so far the changes that CEO Steve Ballmer claims will make the company more nimble and collaborative seem to have resonated with those trading in Microsoft's stock.

Currently the price of Microsoft's stock is up 2.75% at the time of writing. In fact, Microsoft stock is generally up as a whole for 2013, and started surging in late April from $29 a share to its current value of well over $35.

Ballmer will offer more information about the reorganization of Microsoft later today at a teleconference for media and financial analysts. One question that has yet to be answered is if there will be any layoffs as part of this reorganization. It's more than possible that there could be some job redundancies in the new corporate landscape, meaning Ballmer and the new executive team may have to let go of some people. Microsoft has already announced Kurt DelBene, the head of the company's Office division, is retiring as part of this new change.

Ultimately, we won't see the full effect of all of these changes under the new organization for at least a year, if not longer. That's when we should see new products and services that will be developed under this new corporate structure. Will they be better products than those that Microsoft has made in the past? Only time will tell.

Source: Yahoo Finance | Image via Microsoft

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The DOW and S&P as a whole rallied. Out of the 6 stock I track, four closed over 2%, with one pushing 4%. Does this mean they all reacted positively to Microsoft's reorg?

Dot Matrix said,
Guess all those rumors of Microsoft's demise have been greatly exaggerated.

Demise of Microsoft LOL! They have the most diverse portfolio in the world and with many products hitting +$1 billion in sales. isheeps , on the other hand, can keep on wetting their beloved rotten fruit.

Dot Matrix said,
Guess all those rumors of Microsoft's demise have been greatly exaggerated.

don't listen to bunch of trolls here and there. Microsoft is indeed is greatest software and software related services company in the world. Their Cloud Platform Azure is just awesome. Apple iCloud and many other popular cloud services is under the hood getting the service from Azure. their business services is just getting better and better. what company in large scale could work without office and windows installed on every single machine? They embraced the new touch technologies into the heart of their main OS Windows. all the controversies which for sure it was expected for them is going to fade away in few years as technology transition is completed into the new generation devices just as Windows Vista did few years ago. so ... Microsoft is going to stay for a looong loooooooooong time.

This just in: Stock market reacts positively to news about stock market reacting positively to news of Microsoft reorganization.

The whole market is up. While this is a good move by MS, stating that MS' reorg is the reason for the stock increase needs a load of salt.

The grouping makes more sense now and shrinks things, so speed and better cross-platform/software/service situations finally get a boost.

cybersaurusrex said,
I hope it gets real Windows on Windows Phones soon!

I expect Windows Phone 9 will be running on the same OS as their desktop, laptop, and tablets. One unified OS across a range of devices. It wil be the first unlike their competitors with a "stripped down" OS.

sn0wbl1tz said,

I expect Windows Phone 9 will be running on the same OS as their desktop, laptop, and tablets. One unified OS across a range of devices. It wil be the first unlike their competitors with a "stripped down" OS.

That should be the case depending on when we actually get Windows 9 and Windows Phone 9. It seems we could be in for a few more point releases, I doubt 8.1 is the last so we should see 8.2 this time 2014 which means WP 8.2 would be coming as well.

I don't think all of it will make it over. For example I can't see them porting the desktop component to phones as it isn't remotely appropriate for that form factor - it would just introduce a massive headache.

What I expect them to do is make it extremely easy for WinRT apps to share a common code base and simply adapt to the environment that they are in.

At the moment Windows Phone, Windows and Windows RT all share the same kernel - but there are still some differences between WinRT on Windows phone and on the other two. This isn't actually that far removed from Apple's strategy where OS X and iOS both share the Darwin core, the difference being that in their case PCs have one variant whilst phones and tablets have another but in Microsoft's case PCs and tablets have one variant - phones another.