Steve Ballmer, who has been with Microsoft (NASDAQ:MSFT) since 1980 when the company only had 30 employees, and who has been the company's CEO for the past 13 years, has announced he will be retiring within the next 12 months. With the decline of the PC market over the past few years, Microsoft's business is in flux at the moment. Ballmer recently announced a major reorganization within the company, and now that he is stepping down, the market reacted very positively, with shares up nearly 7% today.

In this video, Motley Fool Million Dollar Portfolio analyst Ron Gross sits down with host Alison Southwick, to discuss the market's reaction to the announcement. As Microsoft seeks to find its way in today's changing marketplace, the company's incredible balance sheet combined with the right kind of leadership coming in could take Microsoft in exciting new directions.

Ron talks with Alison about who some of the likely new CEO candidates could be, and also looks at some rather unlikely but very interesting picks. He also tells us what kind of leadership style he's going to be looking for, and why he still sees a lot of upside to the stock today.