Confirmed: Salesforce.com Acquires Buddy Media
Last week Pulse2 wrote about how Salesforce.com would be acquiring Buddy Media for over $800 million. It turns out that the acquisition price is for nearly $700 million in cash and shares. The total acquisition number was $689 million. This is almost as much as Salesforce.com generated in sales during the first quarter of this year ($695 million). According to an SEC filing, Salesforce.com considered acquiring Buddy Media for $745 million.
Buddy Media was started in 2007 and the they work with over 1,000 clients to maintain a social media presence on Facebook, Twitter, LinkedIn, YouTube, and Google+. This was Salesforce.com’s largest social media company acquisition. Last year Salesforce.com spent $326 million to acquire Radian6.
Salesforce.com is spending $467 million in cash and $184 million in common stock. About $38 million will be paid in Salesforce.com options and restricted stock units. Salesforce.com expects to close the transaction in Q4 of 2012. They expect to increase revenues by around $20 million to $25 million in the fiscal year 2013 as a result of the deal. Buddy MEdia raised around $90 million in funding from investors such as Peter Thiel, Mark Pincus, Ron Conway, and Roger Ehrenberg.
“With CMOs surpassing CIOs in spend on technology within the next five years, our Marketing Cloud leadership will allow us to capitalize on this massive opportunity,” stated Salesforce.com chairman and CEO Marc Benioff.