For Microsoft, I recommend the same strategic advice Carl Icahn once gave to the Blockbuster board. Mr. Icahn realized that Blockbuster was in a dying market segment, soon to be displaced by streaming video. What the company did have was a large cash flow. Mr. Icahn wanted Blockbuster to begin a program of paying large dividends to stockholders. The board decided against this. And another large chunk of stockholder wealth went up in smoke. Microsoft would do well to consider a similar strategy. If Office isn’t a cash cow, then I’ve never seen one. And shut down mobile, online, and all the other divisions not paying their way. That means matching the Windows and Office segment returns on investment. Continue Reading →