Andre Yoskowitz
26 Jun 2012 0:07
Microsoft has finally confirmed its acquisition of Yammer, for $1.2 billion.
CEO David Sacks will continue to lead the company as it is integrated into Microsoft's Office division.
Adds Microsoft: "Yammer will be an important addition to Microsoft's cloud services and this acquisition underscores our commitment to helping customers move to the cloud. Together we'll deliver the most complete solution in the marketplace."
Original Story:
Microsoft will be purchasing the business social networking site at an unheralded price.
Yammer, which is little known outside of corporate circles, has been called "Facebook for the workplace" due to its ability to create private social networks within companies.
The company launched in 2008 and was started by PayPal's former COO and has raised $140 million in venture capital since its founding.
Last year, Microsoft purchased Skype for $8.5 billion, in its largest acquisition, ever.
By buying Yammer, many expect Microsoft to add more social features to its popular Office suite. Office brings the company over $20 billion revenue per year.
Yammer has 4 million corporate customers but only 20 percent pay for the premium subscriptions.