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Old March 11 2014, 08:42 PM   #1
AlphaMan
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Is Microsoft Planning To Dump Xbox?

Some investors think so!

http://www.fool.com/investing/genera...5ckffM.twitter

Microsoft recently bought Nokia for $7.2B in 2013. With it, they inherited Steven Elop, Nokia's CEO and former Microsoft executive.

Elop has a ton of experience with these sort of huge corporate transactions. He was involved with McDonald's sale of Boston Market and Adobe's purchase of Macromedia back in the day and now this. Some Nokia investors even go as far as to accuse him of being a plant for the easy purchase of Nokia by Microsoft given the fact that Nokia's stock price slid more than 60% under his leadership.

Well, once Elop was onboard at Microsoft and he was being considered to be the next CEO, he proposed the sell off of their Xbox business. As well as it does in the gaming world, it's profit margins aren't that great compared to its Windows business.

Elop eventually lost his bid to be Microsoft's next CEO to Satya Nadella, but as a consolation prize, he was made the Chief of the Xbox Division. I just hope that given his proposal and his experience with corporate transactions of that nature, that the board at Microsoft isn't really considering dumping Xbox. But they just might be. Why else would they put him ahead of the division he wanted to chop up and sell to the highest bidder?

I don't even know who would be a potential buyer. I'd imagine some huge entertainment conglomerate, but that doesn't make complete sense... Another consumer electronics giant? Certainly not Apple... Maybe Google?

Last edited by AlphaMan; March 12 2014 at 01:22 AM.
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