Microsoft to acquire social media site Yammer
It seems that technology giants are acquiring small start-ups left, right and centre.
Facebook has purchases such as Instagram and Face.com under its belt, Salesforce has snapped up Buddy Media and now Microsoft is looking to get a slice of the social media pie.
The multinational computing software firm announced yesterday (June 26) plans to acquire social network Yammer for no less than US $1.2 billion in cash.
Described as a 'private social network for your company,' Yammer provides users with a platform to share fresh content and collaborate with colleagues in a secure, protected online environment.
According to Microsoft, since launching in 2008 Yammer now has over five million corporate users.
Chief executive of Microsoft Steve Ballmer believes this acquisition will strengthen his company.
"The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love," he said.
"Yammer adds a best-in-class enterprise social networking service to Microsoft's growing portfolio of complementary cloud services."
The team at Yammer also seem happy with this transition. Although the network will become officially under Microsoft's leadership, joining the Microsoft Office Division, Yammer's current chief executive David Sacks will keep his position and his team.
Mr Sacks said that as opposed to losing vision over his company, joining with Microsoft will actually allow him to improve its services.
"When we started Yammer four years ago, we set out to do something big. We had a vision for how social networking could change the way we work," he said.
"Joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we'll need to scale and innovate."
Microsoft also explained that the company will be able to promote Yammer alongside popular features including Skype and Office365.
This news comes not long after Microsoft launched its own social media experiment- so.cl -as I blogged about last month.
Posted by Jess O'Connor