You would have to live on top of the highest mountain in the heart of the Himalayas, and be without computer or television to not know who Microsoft C.E.O. Bill Gates is.
Gates is an American business magnate, philanthropist, the world's third richest man (as of 2008), and chairman of Microsoft, the software company he founded with Paul Allen. During his career at Microsoft, Gates held the positions of CEO and chief software architect, and remains the individual majority shareholder with more than 9% of the common stock.
Now Gates is positioning himself to step down from his full-time work at his own software development company and charge gears just a bit. He plans to put more time and effort into his philanthropic endeavor, the Bill and Melinda Gates Foundation (founded mostly by his own fortune). His decision won't elude his presence in the media. In fact it will keep him in the publics eye for many years to come. "If he was the third-richest man in the world, I don't think there would be anything near the mystique around Bill Gates that there is," says Gary Rivlin, author of "The Plot to Get Bill Gates."
Recently Gates dropped from the number one spot on the Forbes Magazine's Worlds Richest People. Still, his estimated fortune is around $59 billion, and he will always be remembered as the world's richest man. "It's almost like being compared to God, in some ways. People would say, as a matter of speech, he's not as rich as Bill Gates," claims Michael Cusumano, a professor at the Massachusetts Institute of Technology's Sloan School of Management who has written several books on Microsoft and the technology industry.
Perhaps even more amazing than his fortune is the entrepreneurial story of how he obtained it. Though he comes from a well-to-do family and has many privileges such as education at an elite private school, his story is still quite unique. He is credited with being among the earliest people to note the enormity of which the computing and technology industry could grow to. These include the power of the personal computing and the potential to make a fortune selling software. Driven by his new ambition, Gates dropped out of Harvard and started Microsoft with his high school friend Paul Allen. With this solid foundation they built one of the nation's most successful corporations.
Ed Lazowska puts it into words when he says, "It's easy to lose track of the fact that this is two kids with a dream." Lazowska is the chair of the computer science and engineering at the University of Washington and serves on the technical advisory board for Microsoft's research team. "I think there are other people now as well as Bill, but I don't think his influence has diminished."
Gates has done more than create an amazing success story. He has, in fact, made the image of "geek" a more socially acceptable persona. At this year's CES (Consumer Electronics Trade Show), a parody video about his impending departure from full-time work at Microsoft showed Gates playing with action figures in his office, pumping iron with Matthew McConaughey, trying to talk Bono into letting him join U2, and even trying to convince Jon Stewart he'd be a good Daily Show co-anchor. The short film flattered him, but it also shed light on the fact that aside from being a technical guru and business executive, Gates holds a strong place of power in popular culture.
Recently Microsoft has been involved in an antitrust trial. Opinion polls that have been released, however, show that Gate's public opinion has not been seriously hurt by the trial. "We have this love-hate relationship with ruthless and successful people," says Andy Gavil, law professor at Howard University. Gavil closely followed the trial and is currently in the process of completing his book on Microsoft. "We admire them even though we fear them."
Many who watched Gates at the height of the U.S. antitrust trial have been surprised by his transformation into a major philanthropist. He is now intent on solving major global health problems. This dichotomy is yet another reason for the public's fascination with him. "It's extraordinary that this guy in the late 1900's who was so fiercely competitive, is deciding at a relatively young age (his mid 50's) to give most of his energy, not to mention half if not more of his money, to philanthropy," says Rivlin. "It's just shocking."
The company of Microsoft will neither benefit nor hurt from this major change in administration. The next person in charge will keep the company moving at the same stagnant pace it has been at for the past couple decades. As share holders, the stock will not lose value. In fact there is a much better probability now, that the common stock's value could begin a slow rise. If you own Microsoft, continue to hold it. If you don't own the stock, keep watch and look for good opportunities to buy in. Now may just be one of those opportunities.
*And don't forget, you can subscribe to Squawk through our RSS feed or with the Email Subscription Service.
No comments:
Post a Comment