Microsoft Buys Yammer for $1.2B

By Neil Vidyarthi 

Microsoft has agreed to purchase Yammer for for $1.2 billion in cash. Yammer is one of the largest providers of enterprise social networks, allowing companies to implement their own Twitter-like service for their employees. We’ve used the service here at Social Times and found it to be effective, and this is a smart move by Microsoft.

Yammer will fall under the Microsoft Office Division, and the team will continue to report to current Yammer CEO David Sacks.

5 million corporate users use Yammer across hundreds of organizations. Once it’s in use by a team it becomes a vital way to communicate with one another, and I’m sure it was the retention and engagement numbers that really got Microsoft interested in it. Microsoft will be able to deliver a very compelling social networking offering with this alongside their Office suite.

“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.”

Yammer will continue working on Yammer and maintain its own brand. Microsoft will promote the product along SharePoint and other office productivity tools.

“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 infographic provides background and data about Yammer and SharePoint today, and the opportunities that collaboration and enterprise social networking have to help people work more effectively in today's workplace.