updated 05:10 pm EDT, Mon June 25, 2012
$1.2 billion improves Microsoft's social networking clout
Microsoft has finally confirmed that it has moved to acquire enterprise-oriented social networking company Yammer for $1.2 billion in cash. While the deal has been rumored for about two weeks and may have been complete in principle for just as long, this is the first public acknowledgement from either either company.
Yammer will now come under the purview of the Microsoft Office Division, though the startup's team will still report to current CEO David Stacks. The company will continue to develop its standalone service, but Microsoft plans to package Yammer alongside existing Microsoft offerings such as SharePoint, Office 365, Microsoft Dynamics, and Skype.
The Yammer acquisition is likely to greatly increase Microsoft's capabilities in the social networking sector. Yammer counts more than 200,000 companies among its users, including Ford, Shell, 7-Eleven, and EBay.