Microsoft Buys Yammer for US$1.2 Billion

Microsoft Buys Yammer for US$1.2 Billion

Yammer, a cloud-based enterprise social networking (ESN) service, has been acquired by Microsoft for US$1.2 billion, after rumors of a possible takeover circulated two weeks ago. Yammer will continue to be led by existing CEO David Sacks as it is integrated with Microsoft's Office Division, headed by President Kurt DelBene. More importantly, the acquisition will boost Microsoft's social networking capabilities in SharePoint, Office, Dynamics, and various Microsoft collaboration products. On the other hand, Yammer will also continue to develop its ESN service "to maintain its commitment to simplicity, innovation and cross-platform experiences". Microsoft's full press release is attached below.

REDMOND, Wash., and SAN FRANCISCO — June 25, 2012 — Microsoft Corp. and Yammer Inc. today announced that they have entered into a definitive agreement under which Microsoft will acquire Yammer, a leading provider of enterprise social networks, for $1.2 billion in cash. Yammer will join 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 Steve Ballmer, CEO, Microsoft. “Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”

Launched in 2008, Yammer now has more than 5 million corporate users, including employees at 85 percent of the Fortune 500. The service allows employees to join a secure, private social network for free and then makes it easy for companies to convert a grassroots movement into companywide strategic initiative.

Yammer will continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences. Moving forward, Microsoft plans to accelerate Yammer’s adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.

“When we started Yammer four years ago, we set out to do something big,” Sacks said. “We had a vision for how social networking could change the way we work. Joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we’ll need to scale and innovate.”

The acquisition is subject to customary closing conditions, including regulatory approval.