Salesforce to buy social media marketing company
One of the best known global software and cloud computing firms, Salesforce, has just signed a definitive agreement to acquire social media marketing company, Buddy Media.
The total cost of the transaction will come to approximately US$689 million – payable in a combination of cash and company equity – according to an official statement released by Salesforce yesterday (June 4).
This purchase is expected to further enhance Salesforce's ability to provide its clients with tools and resources that will help them optimise their social media strategy.
Salesforce also acquired another similar company in 2011, Radian6, which is a 'listening platform' designed to inform clients about what is being said about their brand online as well as improve their overall social intelligence.
Chairman and chief executive of Salesforce.com, Marc Benioff, said that with both Buddy Media and Radian6, the firm "now has the number one players in social listening and marketing".
Marcel LeBrun, the senior vice president of Salesforce Radian6, alluded to the importance of employing an effective social media strategy in today's modern business climate.
"Social media has caused the biggest transformation in marketing since the Mad Men era, causing CMOs [chief marketing officers] to completely rethink their strategies," he said (June 4).
A five-year-old company, Buddy Media was founded in 2007 and specialises in social advertising and marketing and also provides a platform for clients to publish original content.
Some of Buddy Media's current clients – which total over 1,000 – include Ford, Hewlett Packard, L'Oreal and Mattel.
The company also helps businesses leverage their presence on popular social networks and manage their Facebook and Twitter campaigns.
It is expected that Saleforce will close the transaction at the end of this year's third fiscal quarter – October 31 2012.
Posted by Jess O'Connor