Eager to get his hands on the technical side of his empire, Bill Gates has turned Microsoft over to longtime partner and friend, Steve Ballmer.
In a stunning announcement Thursday afternoon, Gates announced he is stepping aside as chief executive officer of the company he founded in favor of Ballmer, Microsoft's president since 1998. Gates will remain as chairman and take on the new title of chief software architect.
Both men insisted the management switch had nothing to do with reports of a US Department of Justice proposal to break up the company. Ballmer, in fact, said such a move by the government would be "reckless and irresponsible."
Ballmer, 44, will take over as CEO on 27 January.
In his new position, Gates, 44, said he will focus on promoting and improving the company's Windows 2000 operating system, scheduled for release in February.
"I've had the same job for 25 years," Gates said, adding he will spend his time doing what he likes best -- writing code.
"The excitement of my career is still very much ahead of me," he said.
Paul Dravis, an analyst who covers Microsoft for Banc of America Securities, called Ballmer's ascension a natural progression of his changing role over the past six months. Ballmer has been much more visible in the spotlight, Dravis said.
"Ballmer is a very motivational, very aggressive manager, and he's also very pragmatic in terms of addressing the changing needs of the marketplace," he said.
The timing of the announcement -- just days after reports emerged of a DOJ proposal to break up Microsoft as a settlement of the antitrust case -- was purely coincidental, Ballmer said.
When asked about earlier speculation that the US Department of Justice would request Microsoft to voluntarily break up into three pieces as part of the settlement to its ongoing antitrust case, Ballmer appeared angry.
Gates said dividing up the company "made no sense" for customers or shareholders, and added that Microsoft was "not a mutual fund" or a group of random companies thrown together that could operate independently.
"I'm surprised people can keep a straight face when they say that's the right thing to do," Gates said.
Of the reports, Ballmer added, "I believe the leaks were deliberate. I don't think there's any doubt about that."
But he was careful to say that the management switch had nothing to do with the leaks.
"The word coincidence is probably the best word to be used," Ballmer said, adding that he and Gates had been talking about such a change for months.
In Washington, a DOJ official declined to comment on Microsoft's management shift. "Because of the current posture of the case, it would be inappropriate for us to debate the merits of any particular remedy," said spokesperson Gina Talamona.
"The department is committed to seeking a remedy that will solve the serious competitive problem reflected in the court's finding by promoting innovation and consumer choice."
The stock markets had been closed for more than a half hour by the time of the announcement. Microsoft (MSFT) shares rose US$2 during the day to $107.81, and in after-hours trading, shares drifted slightly lower, trading around $107.
