Confirmed: Microsoft Acquires Yammer For $1.2 Billion

Yammer Logo
After some speculation, Microsoft’s acquisition of Yammer has been confirmed. Yammer is a social enterprise company that was founded four years ago by David Sacks. Sacks is also known for starting a company called in 2006 and for producing the movie “Thank You For Smoking.” Sacks was the COO of PayPal between 1999-2002.

Microsoft is buying the company for $1.2 billion in cash. Yammer will be integrated into the Microsoft Office division and the team will continue to report to Sacks.

“The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love,” said Steve Ballmer, CEO, Microsoft. “Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”

Yammer has over 5 million corporate users including employees at 85% of the Fortune 500. Yammer will continue developing their standalone service. Ymmer will be rolled into Microsoft SharePoint, Office 365, Skype, and Microsoft Dynamics.

“When we started Yammer four years ago, we set out to do something big,” 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.”

The acquisition is subject to closing conditions.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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