Microsoft Set to buy Yammer for $1 Billion

Author: Adi Gaskell
Published: June 14, 2012 at 5:42 am

yammerThe buzz caused by Facebook's IPO shows little sign of abating, despite the lacklusture performance of Facebook shares since flotation.  The latest evidence is a reported takeover of Yammer by tech titans Microsoft.

Yammer's Web-based software lets employees work together on projects and share information in an environment that looks more like Facebook than Microsoft Office.

They have however integrated with Microsoft SharePoint since 2010, with that integration improving in April, so the move is not completely out of left field.

Adding Yammer would help Microsoft, the world’s largest software maker, add social-networking tools to the suite of products it offers corporate customers, whilst piling pressure on rival Salesforce.

Salesforce upped the anty last month with a $745 million purchase of Buddy Media, which provided the company with better social networking tools, whilst Oracle has also been investing in social services recently.

Social business tools are increasingly big business and the purchase of Yammer adds a modern sheen to what has traditionally been seen as quite a stale and outdated package in SharePoint.

The move puts SharePoint into more direct competition with Salesforce, who themselves have a variant of Yammer called Chatter.

It marks a sharp rise in value for Yammer however after they raised $85 million in February, valuing the company at just $500 million.

Frank Shaw, a spokesman for Redmond, Washington-based Microsoft, declined to comment on a potential deal. Deanna McPherson, a spokeswoman for closely held Yammer, also declined to comment.


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Article Author: Adi Gaskell

A writer on management issues for publications such as Professional Manager, CMI, HRM Today, Business Works and Technorati. I also cover social media for Social Media Today, DZone and Social Business News.

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