Microsoft is having Some Month, Announces Acquisition of Yammer for $1.2B

By vmazek
In Cloud
June 25, 2012

Article By Looks Cloudy

Continuing the big announcements for the month of June, Microsoft Corp. has announced its acquisition of business social media network Yammer Inc. see (Press Release) below. The move comes on the heels of the announcements of the new Microsoft Surface Tablet, and Windows 8 Phone.

The three recent announcements, tie together what would seem is a strategy of bringing together mobility, communication, and media by intertwining the business and consumer world. This may be the right market combination to bring users back from Apple’s reign on mobility.

With these announcements as well as the acquisition of Skype, Microsoft is positioning itself to provide a total business and communication solution to users with Windows 8. The Yammer agreement brings the business network to the forefront of the Microsoft offering, and speaks to Microsoft’s commitment to cloud services.

If Microsoft can bring the solution stack together in a user friendly, business centric manner, the company may just be able to create an excitement it has lacked for many years. The question is, will Microsoft create the usual “licensing hell” by overcomplicating the suite of solutions and services? We’ll have to wait and see and hope for a new, simple, licensing friendly Microsoft. Either way, the recent announcements are creating a buzz, and giving Microsoft a much needed infusion of cool.

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 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.”

The acquisition is subject to customary closing conditions, including regulatory approval.

About Yammer

Yammer ( is a leading provider of enterprise social networks with over 5 million verified corporate users including employees of more than 85 percent of the Fortune 500. The basic version of Yammer is free, and customers can pay to upgrade their network to receive advanced administrative and security controls, integrations with enterprise applications, priority customer service and a designated customer success manager.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at

Forward-Looking Statements

This press release contains forward-looking statements, which are any predictions, projections or other statements about future events. Actual results may differ materially from these forward-looking statements because of a variety of risks and uncertainties about our business, which we describe in our filings with the Securities and Exchange Commission, including our Forms 10-K and 10-Q. We do not undertake any duty to update any forward-looking statement.

Go to Source
Author: Frank Gurnee