In an effort to persuade corporate America to adopt social networking, Microsoft has acquired Yammer, an “enterprise social networking” startup, for $1.2 billion in cash. Yammer was founded in 2008 and operates like an enclosed Facebook. The social-office network allows a business to set up a private network where employees can post announcements, share files, create events, swap messages, and more. Yammer also offers more traditional corporate features, such as a content management system and an “extranet” that businesses can use to communicate with outside contacts like customers and vendors.
After its founding, Yammer raised about $142 million in venture funding, claiming more than 5 million corporate users, including 80 percent of the Fortune 500 list. The purchase is Microsoft’s largest acquisition since Skype, which it purchased in 2011 for $8.5 billion. In a prepared statement, Microsoft CEO Steve Ballmer said buying Yammer “underscores our commitment to deliver technology that businesses need and people love.” In a joint statement, the two companies said Yammer “will continue to develop its standalone service,” and that it will also be paired with “complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.”
