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Microsoft Corp is close to naming a new chief executive, most likely its cloud-computing head Satya Nadella, a source close to the matter said on Thursday, concluding a five-month long search for a heavy-hitter to lead the world's largest software company.
As part of the move, co-founder Bill Gates may step aside as Chairman but remain on the board, while lead independent director John Thompson will take on the Chairman role, the source said on condition of anonymity because the process is private.
Nadella, a native of Hyderabad, India - where Microsoft has its largest non-U.S. research center - was promoted to run the company's fast expanding cloud, or internet-based, computing initiatives in July last year as part of current CEO Steve Ballmer's radical re-organization of the company.
Nadella's appointment would make him the most powerful Indian-born tech executive in the world and put him alongside PepsiCo Inc's chief Indra Nooyi as the leader of a well-known, large-cap U.S. corporation.
Before his role in shaping Microsoft's cloud computing business, Nadella was in charge of the company's growing server and tools unit, following on from high-level roles in Microsoft's Office and Bing search engine teams.
"He's a solid choice," offering continuity of strategy and proven execution, said Sid Parakh, an analyst at fund firm McAdams Wright Ragen,
Some investors had campaigned for an external CEO who might be more likely to shake up the company and reward shareholders with greater dividends and share buybacks, but Parakh said that did not mean Nadella would necessarily be unpopular with Wall Street.
"Any new CEO is going to have to have the shareholders' say in mind. But it's not certain that will translate into actions," said Parakh.
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