Remaking Microsoft: Break Up The Company

Microsoft needs a makeover, and not one of those cosmetic restructurings where the org chart changes but the company stays the same.

For evidence that its business is broken, look no further than its financial results for the quarter ended Dec. 31 and the fact that the company's stock hit a 52-week low. Microsoft revealed that its client business declined 8% and that sales of Office to consumers plummeted 23%. Microsoft is laying off employees and cutting costs, and it has stopped offering guidance to financial analysts. In other words, Microsoft isn't sure what the hell to expect next.

The economy is partly to blame, of course, but Microsoft's problems are much more deeply rooted.

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