Steve Mollenkopf, the president and the Chief Operating Officer (COO) of Qualcomm, is said to be the dark horse in the race to replace Steve Ballmer as the CEO of Microsoft.
Ballmer has served as the CEO of Microsoft after Bill Gates stepped down from the post in January 2000. However, in August this year, Ballmer announced that Microsoft is in the need of a new CEO and he will leave his office within 12 months.
Under the leadership of Ballmer, Microsoft announced its first tablet range, Surface RT and Surface Pro, in June 2012. The company also launched its new operating system Windows 8 in August 2012. Microsoft released its first tablet, the Surface RT, in October 2012 but the sales of the device disappointed Microsoft's own forecast. Windows 8 also met with some criticism as the operating system (OS) did not have the classic "Start" menu found on previous versions of the OS.
These factors may prompted Ballmer to admit that the company needs a new CEO to move forward.
"There is never a perfect time for this type of transition, but now is the right time," said Ballmer in August. "We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team. My original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services company. We need a CEO who will be here longer term for this new direction."
Stephen Elop, ex-CEO of Nokia, who will join Microsoft as the Executive Vice President, Ford Motor Company's CEO Alan Mulally, Satya Nadella EVP of Microsoft's Cloud and Enterprise group are Tony Bates, EVP of Microsoft responsible for Business Development, Strategy and Evangelism are already rumored to be in the race for Microsoft's CEO position.
Another name, Steve Mollenkopf of Qualcomm, has now been added to the list of potential candidates for the post of Microsoft CEO. Mollenkopf is a trained engineer and has served Qualcomm for around 20 years. Mollenkopf is not a software guy, but if Microsoft is working towards reinventing itself as a devices and services company, Mollenkopf may bring valuable expertise to the company.
Qualcomm has successfully adapted to the rapid change that the technology industry has seen in the last two decades, something that will entice Microsoft to hire Mollenkopf.
However, it seems Qualcomm doesn't want to let go of Mollenkopf.
A day after news circulated that Mollenkopf is being considered as Microsoft's next CEO, the San Diego-based maker of semiconductors announced, Thursday, that Mollenkopf has been named CEO-elect and has been chosen to lead the company and will succeed Dr. Paul Jacobs, the son of the company's co-founder, by assuming the position of CEO in March.
The move was not surprising. Mollenkopf has been instrumental in Qualcomm's growth over the past decade and has been playing a central role especially in the growth of the company's semiconductor operations. Most notably, under his leadership, Qualcomm acquired WiFi chip maker Atheros Communications for $3.1 billion, a deal that allowed the company to take lead in the chip industry.
"Qualcomm's board of directors is responsible for ensuring the continuity of the Company's senior leadership and that the executive team possesses the experience, skills and character required to achieve the Company's goals. With today's announcement, we enable a smooth transition to a proven executive in Steve Mollenkopf, while providing for ongoing executive guidance and Board-level leadership from Paul Jacobs. Qualcomm's Board of Directors unanimously approved the appointment of Steve Mollenkopf to the board of directors and his transition to CEO. We have the highest degree of confidence that his leadership will further expand Qualcomm's impressive record of innovation and continued stockholder value creation," said Sherry Lansing, Presiding Director of Qualcomm's Board of Directors and chair of its Governance Committee.
"I am honored to have been chosen by the board to lead Qualcomm into the next exciting era of the Company," said Mollenkopf. "Qualcomm's focus on execution in product and technology development has helped to establish us as a leader in wireless with our partners. I look forward to working with our executive team and our employees in driving growth for our Company and the entire mobile ecosystem as it transitions to 4G and beyond."
Dr. Jacobs, who will continue with the company as executive chairman, said, "I want to congratulate Steve on his expanded role. I have the utmost confidence in him and in the rest of the management team that they will continue to drive technical and business innovations, ensuring the growth and future of Qualcomm. I very much look forward to continuing to work with Steve."
"I think the consideration of Microsoft of Mollenkopf may have prompted a bit of a speedier announcement," said Williams Financial Group analyst Cody Acree.
Microsoft has not confirmed by when the company plans to announce its next CEO.
Shares of Microsoft were trading 1.22 percent down at $36.76 on the NASDAQ on Friday afternoon. However, Qualcomm's shares were up 0.26 percent at $72.92.
