Microsoft acquires microblogging site Yammer for $1.2 Billion

Written by | Internet, Microsoft, Social Media

A price tag of $1.2 Billion is not bad for 4 year old company and what used to be just a communication tool of a genealogy web site. Yes, Yammer have been acquired by Microsoft for a whopping $1.2 Billion. The announcement was made by Microsoft via press release but the acquisition rumors have already been floating around for weeks before Microsoft confirmed the deal.

Yammer is considered as the twitter for business that provide free and premium service for individuals and companies. Yammer currently have more than 5 million users and only 20% of those users pay and use the premium version of the service. Premium version of Yammer cost $5 per user per month and provides administrative controls, security tools, analytics, SharePoint integration, a dedicated Customer Success Manager and group customization.

The Yammer team will join the Microsoft Office Division, led by division President Kurt DelBene, but will continue to report to Yammer’s current CEO David Sacks. The acquisition will give Microsoft a solid presence in the growing and lucrative enterprise social networking market.

Yammer was originally developed as a internal communication tool of Geni; a genealogy web site. But when David Sacks saw the potential of Yammer, he took the service into a separate company and as they say “the rest is history”. Microsoft said that Yammer will continue as a standalone service but has plans to integrate the microblogging site with it’s Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype which are all cloud services.

In a blog post, Yammer CEO David Sacks said:

When Adam Pisoni and I started Yammer, we set out to do something big. When most people thought social networking was for kids, we had a vision for how it could change the way we work. Four years ago, we started paddling out to catch the wave that we’re riding today.

With the backing of Microsoft, our aim is to massively accelerate our vision to change the way work gets done with software that is built for the enterprise and loved by users.

Not bad for a 4 year old company that was originally intended to be just an internal communication tool, Yes?

Here’s Microsoft press release:

Microsoft to Acquire Yammer
June 25, 2012
Microsoft extends cloud services with best-in-class enterprise social networking.

REDMOND, Wash., and SAN FRANCISCO — June 25, 2012 — Microsoft Corp. and Yammer Inc. today announced that they have entered into a definitive agreement under which Microsoft will acquire Yammer, a leading provider of enterprise social networks, for $1.2 billion in cash. Yammer will join the Microsoft Office Division, led by division President Kurt DelBene, and the team will continue to report to current CEO David Sacks.
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.

“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.”

Launched in 2008, Yammer now has more than 5 million corporate users, including employees at 85 percent of the Fortune 500. The service allows employees to join a secure, private social network for free and then makes it easy for companies to convert a grassroots movement into companywide strategic initiative.

Yammer will continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences. Moving forward, Microsoft plans to accelerate Yammer’s adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.

“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.”

Last modified: June 26, 2012

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Microsoft acquires microblogging site Yammer for $1.2 Billion

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