Steven Anthony Ballmer (born March 24, 1956) is an American businessman, investor, and philanthropist, best known for serving as the CEO of Microsoft from 2000 to 2014. He is the current owner of the Los Angeles Clippers of the National Basketball Association (NBA) and the co-founder of the Ballmer Group, a philanthropic investment organization. As of November 2024, Ballmer's net worth is estimated at $145 billion, ranking him as the tenth-richest individual globally according to Bloomberg, while Forbes places him eighth with a net worth of $123 billion.
Early Life and Education
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| Born | Steven Anthony Ballmer March 24, 1956 |
| Education |
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| Occupations | Businessman,Investor |
| Known for | Former CEO of Microsoft Co-founder of Ballmer Group Owner of the Los Angeles Clippers |
| Spouse | Connie Snyder (m. 1990) |
| Children | 3 |
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Steven Anthony Ballmer was born on March 24, 1956, in Detroit, Michigan, to Beatrice Dworkin and Frederic Henry (Fritz Hans) Ballmer, a Ford Motor Company manager. His father was from Zuchwil, Switzerland, and his mother was the daughter of Samuel Dworkin, a Russian Jewish merchant. Ballmer grew up in Farmington Hills, Michigan, and spent a few years in Brussels, attending the International School of Brussels.
He graduated as valedictorian from Detroit Country Day School and attended Harvard College, where he earned a Bachelor of Arts in applied mathematics and economics in 1977. At Harvard, he was a manager for the Harvard Crimson football team and participated in various clubs. He also excelled in the William Lowell Putnam Mathematical Competition. Ballmer briefly worked at Procter & Gamble and later attended the Stanford Graduate School of Business before dropping out to join Microsoft in 1980.
Microsoft Career
Early Years at Microsoft
Ballmer joined Microsoft in 1980 as the company’s 30th employee, becoming its first business manager. Initially, he earned a salary of $50,000 with a 10% share of profits, but eventually negotiated for an 8% stake in the company. Ballmer’s responsibilities included managing multiple divisions, and by 1992, he became Executive Vice President for Sales and Support. He played a crucial role in developing Microsoft's .NET Framework and other key products.
CEO of Microsoft (2000–2014)
On January 13, 2000, Ballmer succeeded Bill Gates as CEO of Microsoft. His leadership was marked by a significant shift away from the company’s PC-first heritage. Under his leadership, Microsoft’s revenue tripled, and its net income grew substantially, although its stock price stagnated. Ballmer’s tenure saw Microsoft's expansion into new areas like the Xbox division, cloud computing, and acquisitions, such as Skype.
Despite these successes, Ballmer faced criticism for not capitalizing on emerging technology trends like smartphones, tablets, and music players, which led Microsoft to fall behind competitors like Apple and Google. He was also criticized for his management style and failure to aggressively pursue the mobile market, a decision that became a point of contention in his legacy. Ballmer announced his retirement in August 2013, and in February 2014, Satya Nadella succeeded him as CEO.
Public Image
Ballmer is known for his energetic and exuberant personality, often visible in his animated stage appearances at Microsoft events. His viral videos, such as the famous “developers” chant at a conference and his enthusiastic stage entrances, contributed to his public persona. Ballmer’s spirited speeches and actions were widely recognized, and he was regarded as one of the most entertaining CEOs in the tech industry.
Relationship with Bill Gates
Ballmer and Gates shared a close working relationship, often described as a “mind meld.” Ballmer was Gates' best man at his wedding, and the two had frequent combative debates, which were a hallmark of Microsoft’s corporate culture. However, their relationship became strained after Ballmer’s departure from Microsoft, especially over differences in the company’s direction, particularly Ballmer’s push into the hardware business.
Retirement and Post-Microsoft Activities
After stepping down from Microsoft in 2014, Ballmer focused on philanthropic endeavors, co-founding Ballmer Group, an organization aimed at improving economic mobility for children in low-income families. He also became the owner of the Los Angeles Clippers in 2014 after the controversy surrounding former owner Donald Sterling. Ballmer’s leadership of the Clippers has been praised for improving the team’s performance and securing funding for a new arena.
Wealth and Taxes
In 2021, ProPublica documented how Steve Ballmer was using his ownership of sports teams, notably the Los Angeles Clippers, to reduce his federal income tax to as low as 12%—a stark contrast to the 35% tax rate paid by the athletes he employs. The report revealed that while the Clippers were profitable before Ballmer's acquisition, the team reported $700 million in losses for tax purposes in the subsequent years, which helped reduce his tax burden significantly.
A 2023 ProPublica report further highlighted Ballmer’s use of wash sales, assisted by Goldman Sachs, under the strategy known as “Tax-Advantaged Loss Harvesting.” This strategy resulted in tax savings of more than half a billion dollars over a period of five years.
As of October 2023, Bloomberg Billionaires Index estimated Ballmer’s personal wealth at $115 billion, making him the fifth-richest person in the world. His wealth, largely tied to his Microsoft stock, has continued to grow. By July 1, 2024, Ballmer surpassed Bill Gates to become the sixth-richest person globally, with a net worth of $157.2 billion, driven by a 21% rise in Microsoft shares. Gates, in comparison, had a net worth of $156.7 billion, with much of it allocated to philanthropy.
Philanthropy
Ballmer has demonstrated a strong commitment to philanthropy through various substantial donations. Some notable contributions include:
$50 million donation to the University of Oregon in November 2014, alongside his wife Connie Ballmer, who is an alumna of the university. The donation was intended to fund scholarships, public health research, advocacy, and external branding/communications as part of the university’s $2 billion fundraising effort.
In the same month, Ballmer also pledged $60 million to Harvard University’s computer science department. This donation aimed to hire new faculty and enhance the department's national stature. This was a follow-up to his previous $10 million donation in 1994, in partnership with Bill Gates.
In 2022, Ballmer contributed a significant $425 million to the University of Oregon to establish a new institute focused on children's behavioral health.
Ballmer is a prominent member of the World Chairman's Council of the Jewish National Fund (JNF), where his donations have exceeded $1 million.
USAFacts
In 2017, Ballmer launched USAFacts.org, a not-for-profit organization aimed at helping people understand U.S. government revenue, spending, and societal impact. The website uses official government data to make this information more accessible to the public. Ballmer reportedly contributed $10 million to fund teams of researchers who populated the site’s database with official, unbiased data.
Personal Life
Ballmer married Connie Snyder in 1990, and they have three children together. Despite his energetic persona in the public eye, he is known for being a private individual outside of his business endeavors.
Views on Technology
Ballmer's views on competitors and technology often sparked controversy. He once called Apple's iPhone "overpriced" and dismissed it as unlikely to gain market share. He also criticized Linux, referring to it as “communism” in 2000. However, Ballmer later softened his stance on open-source software and recognized the changing landscape of the tech industry, particularly under his successor Satya Nadella’s leadership.
Sports Ownership
Ballmer's involvement in sports began with his attempt to purchase the Seattle SuperSonics in 2008. Though unsuccessful, he later became the owner of the Los Angeles Clippers in 2014. Ballmer's acquisition was seen as a turning point for the Clippers, with significant investments in team performance and new facilities, such as the Intuit Dome, the Clippers' new home arena.
In 2020, Ballmer bought The Forum in Inglewood, California, furthering plans to build a new Clippers’ arena and solidifying his commitment to the team.
Legacy and Impact
Ballmer's tenure at Microsoft was characterized by both major financial success and significant criticisms. While he helped to grow the company’s revenue and diversification, his failure to fully embrace the mobile revolution and his abrasive leadership style left a complicated legacy. However, his post-Microsoft ventures, particularly in sports ownership and philanthropy, have contributed positively to his public image, solidifying his influence in both the tech and sports worlds.
References
- File:Steve Ballmer signature.svg (no date a) Wikimedia Commons. Available at: https://commons.wikimedia.org/wiki/File:Steve_Ballmer_signature.svg (Accessed: 04 January 2025).
- File:Steve Ballmer signature.svg (no date b) Wikimedia Commons. Available at: https://commons.wikimedia.org/wiki/File:Steve_Ballmer_signature.svg (Accessed: 04 January 2025).
- Young, S. (2024) Clippers owner Steve Ballmer launches Halo Sports and Entertainment, Forbes. Available at: https://www.forbes.com/sites/shaneyoung/2024/03/07/clippers-owner-steve-ballmer-launches-halo-sports-and-entertainment/ (Accessed: 04 January 2025).
- (No date) Encyclopædia Britannica. Available at: https://www.britannica.com/money/Steve-Ballmer (Accessed: 04 January 2025).
