When Your Icon Fades Away
June 16th, 2006 by Grant in: Business, InvestingYesterday Bill Gates announced that he will slowly step away from his day to day duties at Microsoft to concentrate his focus on his charitable work (article). The investor in me immediately questioned what effect this would have on the share price (although I own no shares).
Aftermarket activity showed the shares up a few cents, but I don’t see this as a huge reaction to the news.
Then I started thinking long-term and tried to hone in on the effects of Bill Gates’ scaled-back role in the company he founded. I started realizing that Bill Gates is a large part of what Microsoft has become. The words “Microsoft” and “Bill Gates” belong together, almost as if in icon status. So what happens when one part of the icon fades away?
Bill Gates has built a brand around Microsoft that seems to include himself. If you take Bill Gates out of the picture, can the Microsoft brand stand on it’s own?
Take the hit show “The Apprentice” and Martha Stewarts soiree into Trump land. It just didn’t work out, even though Trump was still around to not only facilitate her success but to offer support to his financial interest in her show. If you were to take Trump out of the Apprentice picture completely, what are you left with?
Long-term I think Microsoft will do just fine. Bill Gates has a supporting cast that will keep the company rolling and innovating like it has for the last several decades.
However his supporting cast has a new role to full fill: A new supporting icon.
While Mr. Gates will retain his position in Microsoft, his absence of daily influence will surely be felt.
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