Steve Ballmer leaves Microsoft after 34 years

HE STEPPED down from the top job at Microsoft earlier this year but Steve Ballmer will now officially leave the company so he can run the LA Clippers.

Steve Ballmer, the new owner of the Los Angeles Clippers NBA team, takes questions during a press conference following the Clippers Fan Festival on August 18, 2014 at Staples Center in Los Angeles, California, where the new owner of the team was introduced. AFP PHOTO/Frederic J. BROWN

FORMER Microsoft CEO Steve Ballmer is stepping down from the company’s board, closing a chapter on 34 years with the software giant.

Ballmer says he plans to devote more time to his ownership of his Los Angeles Clippers NBA franchise, civic contributions, study and teaching business at Stanford in the autumn and the University of Southern California next spring.

Microsoft Corp. published Ballmer’s resignation letter on its website Tuesday along with a response from current CEO Satya Nadella thanking him and wishing him well.

The 58-year-old says he plans to hold on to his Microsoft stock and will continue to offer feedback on products and strategy. With 333.3 million shares worth $US15 billion ($A16.23 billion), Ballmer’s four per cent stake in the company makes him the largest individual shareholder.

A few institutional investors hold slightly more.

Ballmer is the new owner of the LA Clippers.

“I bleed Microsoft — have for 34 years and I always will,” Ballmer wrote.

“I will be proud, and I will benefit through my share ownership. I promise to support and encourage boldness by management in my role as a shareholder in any way I can.” Ballmer stepped down as chief executive in February, and since then Microsoft shares have risen about 24 per cent.

The stock closed Tuesday up 0.5 per cent at $45.33. He noted his resignation from the board comes as the company prepares for its next shareholder meeting set for sometime this autumn.

Nadella thanked Ballmer for his support during the transition period and used the opportunity to reiterate the company’s new focus on mobile devices and cloud computing.

“Under your leadership, we created an incredible foundation that we continue to build on — and Microsoft will thrive in the mobile-first, cloud-first world,” Nadella said.

Ballmer’s departure leaves Microsoft’s board with 10 members. It has no immediate plans to replace him.

Satya Nadella replaced Ballmer as chief executive earlier this year.

The company, which is based in Redmond, Washington, adds a new board member about once every year or so. The most recent addition was John Stanton, chairman of wireless technology investment fund Trilogy Equity Partners, in July.

Robert Breza, an analyst with Sterne Agee & Leach, said Ballmer still lives in the Seattle area and will no doubt be accessible if needed.

“Steve will still be relevant for the next two years if someone asks him a question,” Breza said. “It gives them the chance to remake the board. At the end of the day it’s a good thing.” In February, co-founder Bill Gates increased the amount of time he spent at Microsoft as a technology adviser at Nadella’s request, but other than his board seat, Ballmer hadn’t had a formal role after stepping down as CEO.

Ballmer’s resignation from the board came a day after he high-fived and chest-bumped his way through a crowd of 4500 Clippers fans at a rally at the Staples Center.

He bought the team for $2 billion in a sale that a judge confirmed last week.

Originally published as Steve Ballmer leaves Microsoft after 34 years