On June 14th, rumors were circulating that Microsoft was poised to buy Yammer, a social-network and messaging service for enterprise, for at least $1 billion dollars. Speculation cooled down a bit as Microsoft intended to focus on the Surface and Windows Phone 8 announcements but a new week is upon us and so the deal is now official.
Microsoft has now purchased Yammer (www.yammer.com) for a massive $1.2 billion in cash and it will be folded into the Microsoft Office Division, led by division President Kurt DelBene. The team will continue to report to current CEO David Sacks to maintain continuity, at least for the near future.
A statement from Microsoft on the acquisition states
“The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love. Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”
Yammer is only four years old but has nearly 5 million users including employees at 85 percent of the Fortune 500, making it an interesting and strategic purchase. So why the acquisition even though Microsoft has Lync and Sharepoint already? Mary Jo Foley (ZDNet) ruminates that Microsoft "...needed a cooler brand and wanted the cross-platform support" which sounds about right to us.
Here's to hopefully seeing Yammer built into Windows Phone 8.
Full press release after the break...