Microsoft announced on Monday that it would buy Yammer, a social network service for businesses, for $1.2 billion in cash, as it seeks to strengthen its enterprise software business and compete more directly with salesforce.com.
Under the terms of the deal, Yammer will be added to Microsoft’s office division and will continue to be led by David Sacks, its chief executive.
Yammer, which calls itself “the enterprise social network,” is a Facebook for business. Its Web-based service allows companies to create private social networks, where employees can privately chat, shares files and collaborate on projects.
“Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services,” Steven A Ballmer, Microsoft’s chief executive, said in a statement.
This will help Microsoft to pin its applications to a social graph flush with communication tools.
“Microsoft has been a bit slow to social game,” said Rob Koplowitz, a Forrester Research analyst. “Social enterprise is taking off, and Microsoft needs a strong position.”
The New York Times