Microsoft news: Nadella in, Gates’ returns

After a 5-month search, Microsoft announced today that it has appointed Satya Nadella as the company’s newest CEO, taking over immediately for outgoing CEO Steve Ballmer. This is big news for the company, and a decision that we at Fort Pitt Capital are thrilled about. Earlier this morning, I chatted with Forbes reporter Samantha Sharf on Microsoft’s decision to hire from within, and what it means from an investing standpoint. “The board has probably given this a great deal of thought. They understand how complex the company is and how complex it is to make software. Having an inside guy, not needing to learn who’s who and what they do is huge,” I explained. Read the full article: “It’s Official: Microsoft Names Satya Nadella Its Third CEO.”

Coinciding with Microsoft’s CEO news, the company also announced that Bill Gates will return. While his position is unclear, Nadella commented that he asked Gates to take on an advisory role, focusing on technology and products. I discussed this move with Shona Ghosh at PC Pro magazine, after I predicted Gates’ return last October. “What was missing what someone who tied together the silos of different products into a big vision. Gates’ fits the bill as a technology visionary for Microsoft,” I said. Read Ghosh’s full article here: “Bill Gates’ return bodes well for new Microsoft CEO.”