Microsoft is buying internet startup Yammer for $1.2 billion in cash that focuses in social networks for businesses. The deal was announced on Monday that Yammer will become part of the Microsoft Office Division, led by division President Kurt DelBene, and the team will continue to report to current CEO David Sacks.
The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love,” said Microsoft chief executive Steve Ballmer. “Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.
Microsoft is planning to serve Yammer’s service, allowing corporates to join a secure, private social network for free alongside offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.
The acquisition is in regulatory approval and can be expected very soon; though the company didn’t disclose any time frame.
Yammer Inc. was launched in September 2008. And according to reports, the service is being used by more than five million users globally, including 85% of the Fortune 500.
Source: Microsoft News Center