Microsoft buys Internet startup Yammer for $1.2B

Jun 25, 2012
In this Monday, June 18, 2012, file photo, Microsoft CEO Steve Ballmer unveils its"Surface", a new tablet computer to compete with Apple's iPad at Hollywood's Milk Studios in Los Angeles. Microsoft announced Monday, June 25, 2012, that is paying $1.2 billion to buy Yammer, an Internet startup that has built a social network similar to Facebook for the business world. (AP Photo/Damian Dovarganes, File)

(AP) — Microsoft is paying $1.2 billion to buy Yammer, an Internet startup that has built a social network similar to Facebook for the business world.

The deal announced Monday comes nearly two weeks after word of Microsoft's negotiations with Yammer first leaked out in published reports. Yammer provides ways for companies to create private social networks for their employees. It has more than 5 million corporate users.

The acquisition represents Microsoft's latest attempt to adapt to a major shift in the technology industry, one that is fueling demand for more Internet services and social-networking tools. That shift is threatening to weaken Microsoft's position as the world's largest software maker.

Last year, Corp. bought Internet video chat service Skype for $8.5 billion in the biggest acquisition in the company's 37-year history.

Yammer, which is based in San Francisco, had raised about $142 million since its inception four years ago.

Yammer plans to continue offering a standalone service, while Microsoft will encourage its use alongside its other business products, including Office and SharePoint.

"When we started Yammer four years ago, we set out to do something big," Yammer CEO David 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."

Microsoft's stock fell $1.01, or 3.3 percent, to $29.69 in afternoon trading Monday.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Microsoft to buy Yammer for $1 bn: report

Jun 15, 2012

Microsoft has reached a deal to purchase the Yammer business software company for $1 billion in an apparent bid to shore up its widely-used Office software, the Wall Street Journal reported Friday.

Report: Microsoft near deal to buy Skype

May 10, 2011

Microsoft Corp. is nearing a deal to buy the popular Internet telephone service Skype in what could be the biggest deal in the software maker's 36-year history, according to a published report.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

Dec 21, 2014

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

Vendicar_Decarian
not rated yet Jun 25, 2012
Yammer will probably be available through Microsoft MetroTwit.

Bob_Kob
not rated yet Jun 26, 2012
Someone has to tell MS that arriving at the party late is no way to do business. You didn't start the trend, just forget about it instead of making half assed copies.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.