— This is the script of CNBC's news report for China's CCTV on August 27, Tuesday.
Welcome to CNBC Business Daily.
Steve Ballmer's decision to retire, after 13 years at the helm of Microsoft stunned the market and helped drive up the stock on Friday. Ballmer will be with Microsoft for the next 12 months after which his successor will be announced.
The new CEO has his or her work cut out with company's revival and playing catch-up with the decade of innovation in the tech space being top of the agenda.
Speculation about his replacement having been doing the rounds.
But can a new chief executive spark innovation that some argue have been lacking at the software giant? Here's one analyst view. Have a listen.
[Sound on tape by Rick Munarriz, Senior Analyst, Motley Fool: I think it could possibly change the direction of the company, but sparking innovation is going to be hard if investors are expecting a return to the Microsoft of 2005, to the glory days of Microsoft where operating systems were high margin products. That's no longer there anymore - it doesn't exist.]
Munarriz also said that M'soft could tap an external candidate as its new CEO. Here's why.
[Sound on tape by Rick Munarriz, Senior Analyst, Motley Fool: They can't hire from within at this point. They're going in a new direction and they really need someone from Apple, someone from Google. Obviously hiring from Google worked well for Yahoo with Marissa Meyer, and for AOL with Tim Armstrong - two ex-Googlers who joined these tech companies that were meandering, plodding along, and here they go, the stocks have gone through the roof since these guys arrived.]
Well, Steve Ballmer may not be pleased investors cheered his resignation, but as CNBC's Jackie DeAngelis reports, other CEOs may be in the same boat.
[Microsoft's more than 7% jump on Friday after the announcement of Steve Ballmer's departure was the company's biggest one day gain in more than four years.
That surprise pop in the stock price leading investors to wander what other stocks would pop if their CEOs were to unexpectedly step down.
After the Nasdaq's flash freeze last night, and after the botched Facebook IPO, some think a move to replace Nasdaq CEO Bob Greifeld would move that stock to the upside.
But also consider JC Penny. Mike Ullman running things after Ron Johnson's departure, but the company still delivering a weak second quarter. There was speculation earlier this month that Allen Questrom might take the helm there.
Then there's struggling PC maker Dell. CEO Michael Dell still trying to take the company private, but many wondering if the company might be better staying public, and whether new leadership might be just what the doctor ordered.
And finally, Apple. Tim Cook's performance has been lacklustre, with Apple's stock struggling this year, but could someone else innovate better, and is there anyone who could fill the shoes of Steve Jobs?
Those are some of the questions that investors will have to focus on.]
Li Sixuan, CNBC