Microsoft Snatches Yammer For $1.2 Billion In Cash

Ballmer: I hope i won't screw this one up

Microsoft is making a late entry to the social networking industry but it’s making sure that it has an enviable product to make an impact. Microsoft has announced that  it was buying Yammer The Enterprise Social Network for $1.2 billion in cash. Yammer is set to become part of the Office division and current CEO David Sacks will continue to be at helm of affairs. Sacks will be reporting to Kurt DelBene, head of Microsoft’s Office Division.

Sacks wrote on the company’s blog:

I am pleased to announce that Yammer has signed a definitive agreement to be acquired by Microsoft.    After the close of the deal, Microsoft will continue to invest in Yammer’s stand-alone service, and the team will remain under my direction within the Microsoft’s Office Division.

As a Yammer customer, you will continue to get a secure, private social network—delivered with the same focus on simplicity, innovation, and cross-platform experiences.  Over time, you’ll see more and more connections to SharePoint, Office365, Dynamics and Skype.

With this acquisition, Microsoft aims to bolster its multi-pronged attacks on many threats. First of all is to capture a share of social networking crowd in which it has no presence. Second and much immediate is to counter Salesforce Chatter and other players such as IBM and Oracle. Third reason is Microsoft’s Sharepoint which inspite of being a great product hasn’t been able to keep pace with social space.

What all Microsoft will be able to do Yammer is still to be seen. Let’s hope Microsoft does something credible with this sound product which by the looks of it seems to be perfectly aligned with Microsoft’s business.

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I am the founder of Azurebiz Solutions. I love to write about SEO and technology. On my blog, you can read about my views on the Search industry. Aniruddha on Google+

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