Microsoft buys Yammer business networking site for $1.2 billion

  • By The Associated Press
  • Monday, June 25, 2012 1:43pm
  • News

By The Associated Press

SAN FRANCISCO — 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, Microsoft 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.

More in News

Hilary Soderling of Kirkland, left, and her mother, Lou Ann Soderling of Port Angeles, participate in Saturday’s rally at the Clallam County Courthouse. (Keith Thorpe/Peninsula Daily News)
Overturning Roe v. Wade draws protests

Rally participants: Decision doesn’t represent majority

Bruce Colfax was one of many Makah who worked at the Ozette excavation that ran for 11 years starting in 1970. Colfax, an artist whose wood carvings, sculpture and prints belong in private and public collections across the country, is a former member of the Makah Cultural & Research Center board of trustees whose role it is to protect the artifacts found at the site. (Paula Hunt/Peninsula Daily News)
Cultural, research center celebrates 43rd anniversary

Ozette village artifacts preserved after excavation

Churches seek household items for Ukrainian refugees

Collection drives to be conducted for kits

OlyCAP theft forces rescheduling of food deliveries

Distribution center trucks damaged

Weekly flight operations scheduled

There will be field carrier landing practice operations for aircraft… Continue reading

Gov. Inslee seeks abortion rights amendment to state constitution

Says Washington won’t aid investigation from other states

Lawsuit filed against Washington State Patrol official over breath test machines

A lawsuit filed against the Washington State Patrol official responsible… Continue reading

Vote now for Best of the Peninsula

It’s time again to vote for the Best of the Peninsula. Now… Continue reading

Most Read