An arrangement was recently made between Microsoft Corp. and Yammer Inc., two highly renowned companies in their respective fields, by which Microsoft would acquire Yammer. The two have entered into a definitive agreement as per which, Microsoft has cracked the deal for $1.2 billion in cash. As per the agreement, Yammer is expected to join the Microsoft Office Division under the leadership of division president Kurt DelBene and shall continue to report to current CEO David Sacks.
Microsoft, established in 1975, is a leading company that provides software, services and solutions that are used by millions worldwide. Yammer, on the other hand, is a four year old company that has established its stand in the market by being a leading provider of enterprise social networks with over 5 million verified corporate users including employees of more than 85 percent of the Fortune 500 companies.
The agreement between the two is supposedly made with the intention to deliver the best technology for business needs. Steve Ballmer, CEO, Microsoft commented, “The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love. Yammer adds the best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”
Yammer offers a special service to customers wherein it allows employees to join a secure, private social network. It further makes it easy for companies to convert a grassroot movement into a company-wide strategic initiative. The basic version of Yammer is free but users need to pay to upgrade their network and receive advanced administrative and security controls.
Though Yammer has entered into an agreement with Microsoft yet, th shall hardly hamper its decision making powers. The company shall continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences. Yammer has already hinted that this acquisition is subject to customary closing conditions, including regulatory approval.
“When we started Yammer four years ago, we set out to do something big,” said Sacks, CEO, Yammer. “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… Read the rest