Microsoft to Improve Its Enterprise Social Networking with Yammer Acquisition

On Monday, Microsoft announced plans to acquire Yammer, a leading provider of enterprise social networks, in an attempt to improve its presence in this market segment.

The two companies have entered a definitive agreement through which Microsoft will purchase Yammer for $1.2 billion in cash.

Moreover, the Redmond-based company also announced its intention to integrate Yammer into its Microsoft Office Division, led by division President Kurt DelBene. The team will continue to report to the current CEO David Sacks.

“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 was launched in 2008, but is currently counting over 5 million corporate users, including employees at 85 percent of the Fortune 500.

Through this service, people can access a secure, private social network that is available for free, which makes it easier for companies to convert grassroots movements into enterprise initiatives.

However, while the basic service is being offered for free, customers can also choose to upgrade to receive advanced administrative and security controls, integrations with enterprise applications, and other features.

Following the acquisition, Yammer will continue the development of its standalone service and will remain committed to simplicity, Microsoft stated. It will also remain focused on innovation and cross-platform experiences.

However, Microsoft does aim at accelerating the adoption of Yammer, while working on coming up with complementary offerings from SharePoint, Office 365, Microsoft Dynamics and Skype.

“When we started Yammer four years ago, we set out to do something big,” David 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 acquisition will be subjected to customary closing conditions, including regulatory approval, Microsoft also stated.

Via: Microsoft to Improve Its Enterprise Social Networking with Yammer Acquisition