Additionally,the company's board is considering replacing Bill Gates as chairman, according to Bloomberg, citing sources.
Nadella is currently the chief of Microsoft's enterprise and cloud business. Nadella emerged weeks ago as one of the candidates to replace departing CEO Steve Ballmer , according to Bloomberg, citing sources familiar with the search.
The company considered internal and external candidates for the position including Ford CEO Alan Mullaly.
Microsoft was slightly higher in after-hours trading,extending gains from the regular session Thursday.
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