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Allen quits Microsoft board
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September 28, 2000: 5:50 p.m. ET
Billionaire co-founder Paul Allen won't stand for re-election, will stay as adviser
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NEW YORK (CNNfn) - Paul Allen, the billionaire co-founder of embattled software company Microsoft Corp., plans to step down from its board of directors in November, but will stay on as an adviser, the company said on Thursday.
A Microsoft spokeswoman said Allen, 47, stepped down to focus on his other endeavors. He intends to stay on as a "senior strategy advisor."
 "He is extremely involved with many other ventures of his own and cannot maintain the time commitments with the board," she said.
A chief architect of the 25-year old company, Allen left the company's executive ranks in 1983, due to a battle with Hodgkin's disease. He has since built a diverse portfolio of technology and telecommunications holdings via his capital firm, Vulcan Ventures. Allen also owns two professional sports franchises, the Portland Trailblazers basketball team and the Seattle Seahawks football team.
"Being an active board member for a dynamic and successful company such as Microsoft is a time-intensive role and one I have enjoyed for many years," Allen said in a statement. "However, this new role will enable me to spend my time on technology and products, where I can really make a significant contribution."
As an adviser, Allen will work with Microsoft Chairman Bill Gates and Chief Executive Steve Ballmer as counsel on "a wide range of issues," the spokeswoman said. Of course, Allen still holds a vested interest in the company's future -- he owns almost 200 million shares of Microsoft stock, according to federal documents.
Allen is worth more than $36 billion, making him the third richest person in America, according to Forbes magazine.
"Paul was instrumental in the creation of Microsoft and has played an important role in the success and direction of our company throughout the years," Microsoft's Gates said on Thursday in the company's proxy statement to shareholders.
"I will continue to value his friendship and counsel in the years ahead," Gates added.
Latest in line of high-profile departures
In addition, board member Richard Hackborn, 63, who last week stepped down as non-executive chairman of the board of Hewlett-Packard, will also not run for re-election, Redmond, Wash.-based Microsoft said. Hackborn plans to spend more time on personal and philanthropic pursuits, the company said.
Microsoft said that it would not replace Allen and Hackborn, who joined as a director of the company in 1994, effectually shrinking the board to six members from eight.
Allen served on the board between 1981 and 1984, and rejoined it in 1990. Both men are set to leave the board effective November 9, the date of the company's annual meeting.
Earlier this month, another key, longtime figure at Microsoft, Paul Maritz, left the company after 14 years of service. Maritz, group vice president of Microsoft's Platforms Strategy and Developer Group, said he would retire for personal reasons, but will continue to work with the company as a consultant.
Microsoft has seen several defections from its executive offices during the past year, including the loss of Nathan Myhrvold, former chief technology officer, who left in May.
Microsoft (MSFT: Research, Estimates) was found guilty in June of violating the Sherman Act, the nation's antitrust law, through the use of its monopoly on the Windows personal computer operating system to stifle competition. The software leader was ordered by U.S. District Court Judge Thomas Penfield Jackson to split the company in two to open competition.
On Tuesday, the Supreme Court Tuesday declined to consider the government's bid to break up the software giant, choosing instead to send the case to a lower court, a move seen as a victory for Microsoft.
Shares of Microsoft closed up rose 69 cents to $61.31 a share in the regular session on Thursday. In after hours trade, the stock eased 81 cents to $60.50. 
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