Microsoft to buy enterprise social network Yammer for $1.2 billion

Seemingly unwilling to let anyone else have any limelight, Microsoft today confirmed their oft-rumoured acquisition of self-proclaimed enterprise social network Yammer. Having announced a deal for $1.2 billion in cash for the company, Microsoft plans to combine the network, which launched in 2008 and has been presented with various collaboration awards, with its SharePoint collaboration tool to provide a market-leading enterprise experience, proving that it’s not all about the consumer to Ballmer and the folks in Redmond. To help illustrate their point, the company made up a handy infographic explaining why Yammer and Microsoft are a perfect fit for each other, along with the obligatory press release that can be found below.

REDMOND, Wash., and SAN FRANCISCO — June 25, 2012 — Microsoft Corp. and Yammer Inc. today announced that they have entered into a definitive agreement under which Microsoft will acquire Yammer, a leading provider of enterprise social networks, for $1.2 billion in cash. Yammer will join the Microsoft Office Division, led by division President Kurt DelBene, and the team will continue to report to current CEO David 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.”

Launched in 2008, Yammer now has more than 5 million corporate users, including employees at 85 percent of the Fortune 500. The service allows employees to join a secure, private social network for free and then makes it easy for companies to convert a grassroots movement into companywide strategic initiative.

Yammer will continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences. Moving forward, Microsoft plans to accelerate Yammer’s adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.

“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 customary closing conditions, including regulatory approval.

About Yammer

Yammer (www.yammer.com) is 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. The basic version of Yammer is free, and customers can pay to upgrade their network to receive advanced administrative and security controls, integrations with enterprise applications, priority customer service and a designated customer success manager.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.

Forward-Looking Statements

This press release contains forward-looking statements, which are any predictions, projections or other statements about future events. Actual results may differ materially from these forward-looking statements because of a variety of risks and uncertainties about our business, which we describe in our filings with the Securities and Exchange Commission, including our Forms 10-K and 10-Q. We do not undertake any duty to update any forward-looking statement.

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Nokia Lumia: Meet the new king of smartphones

The Nokia Lumia range was launched on Wednesday morning at the annual Nokia World event in London. Along with the Asha range of budget Series 40 phones for the next billion internet users, Stephen Elop’s company unveiled the Lumia 710 and the flagship 800. This announcement would be the most important event in the history of Nokia. Symbian was seen by many as a disaster (THE FONT!) and MeeGo only appeared on one device before becoming Tizen. For Microsoft it was important as well. Windows Phone 7 has been well received, but has failed to gain traction in the overcrowded (by Android) smartphone market. Together they could rejuvenate both their brands with affordable, premium devices, full support, backing and promotion from networks and a multi-million pound ad campaign everywhere you look.

And that’s exactly what they’ve done.

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