Microsoft buys social-office network Yammer for $1.2 billion


Microsoft has acquired Yammer, an “enterprise social networking” startup, for $1.2 billion in cash. Yammer operates like a gated Facebook: A business can set up a private network where employees can post announcements, share files, create events, swap messages and more. It also offers more traditional corporate features like a content management system and an “extranet” that businesses can use to communicate with outside contacts like customers and vendors.

Microsoft’s acquisition continues a recent trend of M&A deals in social media. Last week, Salesforce bought social media marketing company Buddy Media for $689 million, just one month after they bought collaboration software company Stypi.


Do you think private social networks, built on platforms such as Yammer, are a sufficient substitute in corporate environments where access to Facebook and Twitter has been restricted?


2 thoughts on “Microsoft buys social-office network Yammer for $1.2 billion

  1. From my understanding, this isn’t a substitute for Facebook, but a way to better facilitate communication within large companies in the same way that they were using multiple sources, like your company newsletter, messenger, etc. It is sufficient in that it allows a level of comfort and privacy that Facebook doesn’t. You don’t want to set up your meeting reminders over Facebook and in one misclick have it exposed to everyone.

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