Microsoft Acquires Yammer for $1.2B

Wall Street Journal reports another case of over $1 billion purchase.  This time Microsoft has agreed to buy over Yammer, a company in software business, at an estimated price of $1.2 billion.

Both companies are mum about the deal.  However, negotiations have been going on for some time now and are not finalized.

What advantage does this purchase bring to Microsoft?  Yammer is in the business of creating private social networks within companies.  Bloomberg News reports acquiring Yammer would help Microsoft add social-networking tools to the suite of products it offers corporate customers.

Sources say that this acquisition could be the smartest move by Microsoft ever. Here are some additional insights:

1. Strengthens Microsoft’s social positioning in enterprise products. The acquisition injects the right amount of steroids into Microsoft’s main bloodstream to reclaim back the lost ground they had on enterprise solutions and marketplace. The fact that Yammer provides 200,000+ companies worldwide with their solution tells the story that the market demands such a product.

2. Natural migration path for Microsoft. Microsoft needs this product to integrate as it fully complements its Office suite offerings. By adding a social element to Outlook and SharePoint, Microsoft has made its corporate products more powerful and collaborative without lifting a finger.

3. Yammer now has immediate worldwide distribution. Yammer can now ride on top of the most extensive enterprise platform to date: Windows. Expect the growth to be viral and immediate.

Other News Of Purchases Around Social Media

As Bloomberg points out, a deal for Yammer would follow other recent enterprise software purchases centered on social media. For instance, Salesforce.com gained social marketing tools through its $745 million purchase of Buddy Media, Inc. this month and Oracle recently bought Vitrue Inc. and Collective Inellect Inc, to companies that analyze data on social-media sites.

On a smaller scale, it was announced Thursday that Syncapse, a company that helps other firms manage their brands on Facebook, has acquired Clickable, a smaller company which helps businesses buy Facebook ads. Purchased price wasn’t announced.

Filed under: Social Media News

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