updated 05:45 pm EDT, Fri June 15, 2012
No confirmation yet on social media acquisition
Sources familiar with the matter have told The Wall Street Journal that Microsoft has agreed to acquire enterprise social networking company Yammer. The software giant is said to be purchasing Yammer for $1.2 billion, though the acquisition has yet to be completed and there is no information on when it will be announced. The Journal's confirmation comes a day after news of negotiations between the two companies first emerged.
Yammer provides Facebook-like internal communications and collaboration capabilities for businesses. The company counts more than 200,000 companies among its users, including large corporations such as Ford, Shell, and EBay.
The deal is expected to result in improved collaborative capabilities for companies relying on Microsoft's Office productivity suite. The Yammer acquisition will also provide Microsoft with more capabilities in the cloud-computing sector.