Steve Ballmer's relationship with the Microsoft board had all but disintegrated before he announced his retirement in August 2013, with the Nokia acquisition serving as a key source of internal conflict.
Ballmer's relations with Microsoft's directors hit an all-time low in June 2013 when he was told his plans to acquire Nokia would be rebuffed,sources told Bloomberg.
The former Microsoft chief, who was known for being excitable, is said to have shouted so loudly that he could be heard outside the room.
Key people at Microsoft - including co-founder Bill Gates and current CEO Satya Nadella - were initially against Ballmer's plan to acquire Nokia. Nadella has since changed his mind - claiming it's the "right move for Microsoft".
Although Ballmer got what he wanted, when the board signed off the $7.2 billion purchase of Nokia's mobile business, the breakdown in relations led to the directors trying to find a way to ease him out.
Sources claims the board contemplated hiring Ford CEO Alan Mulally to succeed Ballmer because he was someone he admired.
Mullaly was deemed an early favourite to takeover at Microsoft, due to his work at Ford, but his age and lack of experience in the technology world appear to be reasons he was passed over.
It has now emerged that Mulally fell out of favour when the Microsoft board felt he was giving the impression he should get the job without an interview.
The final three candidates for the role were rumoured to be Stephen Elop, Nokia's former CEO, Tony Bates, executive vice president of Skype, and Satya Nadella, vice president of cloud and enterprise, who eventually got the nod.
Since taking over as CEO in February 2014, Nadella has moved quickly to restructure the management.
Top executives including Tony Bates and Tami Reller (CFO) will leave the company, while Mark Penn, a former Clinton family aide, will become Microsoft's chief strategy officer.
Nadella is also believed to have convinced co-founder Bill Gates to take a more active role at Microsoft, although sceptics believe the co-founder could be preparing for a Steve Jobs-style second coming to reinvigorate the firm.
The latest revelations come as Steve Ballmer claimed he would re-do the last 10 years at Microsoft, admitting the firm missed out on the mobile market.
