Microsoft’s big overhaul could reshape its financial reporting

amy-hood

Microsoft CFO Amy Hood

Microsoft is set to announce a long-rumored internal reorganization as early as Thursday, according to a report overnight by AllThingsD, citing unnamed sources.

Apart from reshuffling the company’s top executives, AllThingsD’s Kara Swisher reports that Microsoft CEO Steve Ballmer may also change the structure of the company’s divisions for purposes of financial reporting — which could make the performance of some individual products and services tougher (or impossible) to decipher.

This is one of the areas that we’ve been watching closely in the buildup to the reorg, and it promises to frustrate investors depending on how far it goes. Microsoft has a new chief financial officer, Amy Hood, who would oversee the implementation of these changes.

One of the current divisions that seems ripe for obfuscation is Microsoft Online Services (home to the Bing search engine), which has accumulated a loss of nearly $11 billion since 2005, by Business Insider’s calculations. In addition, the Xbox group appears poised to become part of a larger hardware division, potentially mixing its results with those from Surface and other devices.

Swisher quotes sources cautioning that the changes in the financial reporting structure “could take some time” and require regulatory approvals.

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  • Guest

    Here after reading the title I was hoping they would be doing this to to make it easier to spin off or sell divisions.

    But that would make too much sense.

    Deeper obfuscation locking the entire company even more into the “better together” suicide pact is at least consistent if not wise.

    • Guest

      Why would it make sense when management is clear they want more cross division partnership, not less, and factors like the cloud and offering devices are blurring the lines that typical served as boundaries for their divisions?

  • guest

    The timing of this “imminent”-for-months reorg is becoming a mini soap opera in itself. I know find myself looking forward to each “any day now” update.

    • guest

      Trolls tend to get fixated on rumors. Nothing knew there.