Buddy Media, Salesforce.com Deal ‘Roughly in Line’ With Other Social Media Marketing Transactions

We tweeted about this previously, but now it’s official: cloud computing company Salesforce.com is buying Buddy Media for $689 million or so. The sale will be official at the end of Q3, October 31, 2012.

“The marketing industry is undergoing the biggest transformation it’s seen in 60 years, and it’s all being driven by the unprecedented growth of social networks,” reads the Buddy Media press release. This transaction is meant to bring together Salesforce’s marketing and monitoring capabilities with Buddy Media’s social marketing platform.

“With CMOs surpassing CIOs in spend on technology within the next five years, our Marketing Cloud leadership will allow us to capitalize on this massive opportunity,” said Marc Benioff, chairman and CEO, salesforce.com in a statement.

WPP is on the list of Buddy Media investors. Reuters quotes an analyst note from Evercore Partners’ Kirk Materne: “While the $689 million price tag … is not cheap, we note that it values the company roughly in line with other recent deals in the social media marketing space.” Oracle purchased Vitrue for $300 million at the end of May.

Buddy’s co-founder and CEO Michael Lazerow made the moving video above, that both announces the sale and gives a little history of the co-founder himself. Ian Schafer, founder and CEO of Deep Focus, comments on the video from a young entrepreneur’s perspective and as a friend.