Microsoft CEO Steve Ballmer to Retire

The 57-year-old businessman will retire within 12 months after 33 years with the company.
10:04 | 08/23/13

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Transcript for Microsoft CEO Steve Ballmer to Retire
This is a special report from -- -- Good morning -- -- Hernandez in -- -- with an ABC news digital special report -- changes at Microsoft. As the big man Steve Ballmer announced he will be resigning in the next twelve months. Joining us live with more on this is Yahoo! finance is -- cent toll Mike thank you for joining us. -- -- so -- where I was responsible for Xbox being and he also purchased Skype. But doesn't highlights -- it for months people have been calling for his resignation where'd he go -- Well I think the company in general if you think about when he took over January of 2000 was almost the exact peak of the technology bubble of the ninety's -- -- which Microsoft was -- you know one of the leaders and basically had a quasi monopoly -- -- mean business when you have a company like that Obama was overseeing to try to figure out what the next -- was going to be just didn't quite succeeded in capture. Really the whole market in search. -- in mobile. -- in tablets a lot of hardware innovations that came about. During his tenure obviously did not come out of Microsoft interestingly he just initiated a big revamping of the company to actually more oriented toward. Hardware. He's not going to be the one to follow that through. Still -- a company that makes a lot of money and still has a lot of money. Certainly does now -- did is billions and billions of cash flow every year it's the one most valuable companies in the world it's not a matter of is it being a failing company but there was a sense that under bomber it didn't have a real clear strategic vision. For what was going to be next it was still still tethered largely to the PC. Economy as opposed to you know mobile and other other areas its tablet was not necessarily -- hit to say the least. So I do think that it did there's a lot to work with at Microsoft lot of people when they say they want to -- -- -- bomber out what they really want it may be a rationalizations the company to even break up. Into pieces at this point. So let's talk about those pieces what what would happen what are they want to separate out. Well it's not entirely clear but certainly Xbox as a business is not fully reflected in Microsoft's value in the stock market so would be kind of a split between some may -- software hard work. You could separate out you know MSN search. And all those other areas that are and depended so. It's not clear -- obvious why you would have to do that -- to think that their market would value the individual pieces. More than they currently are valued as as a whole company. Send you my research on bomber you know I read some pretty scathing articles about him -- -- calls for his resignation. Louder than most. While they were loud because of the prominence of the company and because a lot of people in the technology industry are very passionate about. You know which companies are innovating -- which ones aren't. He also had this -- to -- he's 57 years old now so clearly it's not and no brainer that -- retire right now but he's been in the job a long time. Thirteen years is a very long time to -- a huge company like that and a sense that he was sort of rooted. In now the prior generation that built Microsoft. You know along with Bill Gates as opposed to -- you know somebody was more forward looking also on a personal level people you know didn't necessarily find a Mormon -- All right he released a statement -- is employs about his resignation and every -- doesn't sound like. This too thrilled to go. Here it goes and this is an emotional and difficult thing for me to do I take this step in the best interests of the company I love it isn't being outside of my family and closest friends that matters. To me most. But at the same time. -- you know he's recognizing perhaps that it is time he's given been given what twelve months. Until a replacement is found. Well at least at most twelve months so what he's essentially saying is as soon as the board finds a successor as CEO he will retire so the twelve months is this kind of the at the outside if it possibly could take that long I actually very much much less than twelve months and yes it does seem. Like there's some ambivalence or reluctance attached to it. Not too surprising. But I don't really at all see it as the board dismissing him or anything like that. You know it's interesting in and reading on -- history he was one of the first to work with gates and -- company and he's someone who'd been around since the beginning. But they seem to suggest that Vollmer. Really -- Rewarded loyalty to sort of the entrenched ideas rather than in innovation. Job. That Bennett that is definitely the knock on him but it's hard for me to say whether that was him personally that basically imposed. That sense or whether it's the natural outgrowth. Of being a company that's incredibly dominant in one area so that every new idea that comes along you worry about laws are gonna cannibalize our existing business is very hard for big companies that have huge market share to be the ones to innovate for the next step. -- how about the Microsoft stock it seems like the markets are responding well to this -- yes. While they are they clearly think that not only bomber leaving and -- new CEO coming in can be a catalyst for. For some kind of a corporate restructuring -- just a general you know raise the metabolism level of Microsoft it's always been. You know very inexpensive so always the last several years very inexpensive stock based on how much money they -- today the question -- always been you know can they sustain it and actually -- -- growth story again. And so the market is essentially saying maybe it's more likely under somebody -- by the way. Bomber himself owns more than 300 million Microsoft shares sell at some point this morning he was had an additional -- close to billion dollars network. Senator good news bad news think that's right -- right -- cent toll from Yahoo! finance thank you so much for joining thank you. Right now we're gonna bring an ABC's technology editor Joanna Stearns has been. Working this story all morning Joanna thank you for joining us good to be here are great so. He's on his way out someone else will be on their way and do we know who that person might be or what their background is going to be. That's the big question now who comes next -- who comes after a bomber who's been in this position for. For quite a few years obviously following Bill Gates who was a very notable leader and really led the company. And you know but the question is is -- going to be -- from within -- is going to be someone from without. And so they are obviously gonna start conducting a search for this that's going to be head up head it up by the board. And -- you know when you think about who might come from within -- a couple of names that come to mind. Though this does come after a couple of really high profile executives have left so back out right after windows eight launch it was a big launch in October. In November the head of windows eight -- -- he actually exited and never. A lot of talk in my sources say a lot that you know they just did not get along and bomber did not feel like he was the right person to leave the windows the windows platform. And so stepping in for him was a woman named Julie Larson green and she has now taken over in a big restructuring of the company -- A division that really focuses on the devices and -- she's really being now heading up the devices everything from their surface tablet to the acts box. Another name that comes to mind is Terry -- he is now heading up the operating systems he oversees windows that Windows Phone. Across all of those platforms so those are -- two -- names from within. But of course they might take -- search broader and look at people within this industry. And might be something that Microsoft might need they might need got fresh idea -- coming from a -- company seeing this whole industry from afar and seeing where Microsoft can really play. Do you think that device is it's going to be the focus the number one focus in terms of their choice for a new leader in the company you know that there tablet didn't do well there. Outpouring and found an. Is that really what they wanted to. I think that's one major component where you look at the race right now in the tech industry. It's which company is gonna do device as well but who really -- -- do it across the device as well. Who's gonna playing really well with phones and then have that experience sync well with your tablet with your laptop. And then with the TV the TV is a big -- market for Microsoft with Xbox coming out -- new Xbox one. Coming out this fall they haven't said the exact date but it's gonna come out this fall for the holiday season. So I think that the next question whoever this leader is -- to see that across -- to our cross all of these platforms. Has to be a real leader in seeing the synergy between all of these and -- actually taken steps. In that regard -- -- one of the things he did a couple of months ago in the beginning of the summer was completely reorganize the company to get all of their products to work better together so they have. Now all of the Xbox team really working with the windows team or at least that's what we're hearing from reports. Though that something that was a really big problem and one of the problems that has helped Microsoft back is that. Just the company wasn't talking to each other. The windows division wasn't talking to the Xbox division and so -- are -- gonna have a tablet that plays well if -- TB if those people within the company this massive company. Aren't communicating -- is that perception that apple may be in -- -- something that Microsoft's may try to move in and take advantage of now. I think -- -- In the technology industry were always really quick to wanna say someone's you know in and -- went out and especially between apple and Microsoft I mean how long had about war being going on right we've got the map we've got the PC. It's always a really fun thing to stand to look at. And I think we're in our transition period in the industry right now we've seen a lot of buzz around Smartphones and tablets -- -- very important market. But I think a lot of these big companies are looking to the next big thing. And I wouldn't count out other players to -- look at Amazon has a really big player that's coming in obviously apple you know we we look beyond that we look at some of the social networks we look at FaceBook at what they're trying to do really in a way on an operating systems side. So all of these. All of these companies are really coming into play right now into figuring out. How are we gonna get a better ecosystem -- prod. It's. All right Joanna stern thank you so much for joining us now was put it on prospective man again our thanks. To my accent telling at Yahoo! finance this is that an ABC news digital special report anti Hernandez in New York. This has been a special report from me.

This transcript has been automatically generated and may not be 100% accurate.

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