More rumors emerge on Microsoft-Yammer deal

Earlier this week, rumors hit the Internet that Microsoft was close to announcing that it was going to buy the business-themed social networking company Yammer. Yet another story said that the deal was official and that the asking price could be over $1 billion. Neither Microsoft nor Yammer have confirmed or denied any of these stories so far.

Now Business Insider claims, via unnamed sources, to have some more details about this Microsoft-Yammer deal. For one, the actual price that Microsoft will pay for Yammer is still in question. The article states, "We've heard $1 billion, $1.2 billion, $1.4 billion, and $1.6 billion. That suggests that there might be some continued negotiations over price."

The story also says that the main deal itself "has been pretty much locked in for weeks." However, Microsoft wants to announce the Yammer acquisition sometime later than its planned reveals for its big, and still somewhat mysterious, press event happening on Monday. Bloomberg states in a separate story that the official reveal might happen at the end of June.

Finally, even with all of this buyout rumors, Yammer is still reportedly hiring new people to work at its company, despite previous reports that it was holding off on bringing in new team members because of the Microsoft acquisition.

Source: Business Insider

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I had never heard of Yammer before this entire rumor started. Why is buying Yammer somehow bigger than Microsoft buying Skype?

pickypg said,
I had never heard of Yammer before this entire rumor started. Why is buying Yammer somehow bigger than Microsoft buying Skype?

Yammer is big in enterprise space, it's private FB for enterprise. MS has it's own type of services that do the same thing but Yammer has the userbase. MS buys yammer and it's got millions of new customers, just like with skype but unlike that I doubt MS will keep yammer around as it's own division. MS will role yammer into it's own stuff, keep the brand ofc cuz it's a good one but it'll all run on sharepoint and stuff in the end.

It's just a nicer fit into MS's enterprise services/software compared to Skype.

pickypg said,
I had never heard of Yammer before this entire rumor started. Why is buying Yammer somehow bigger than Microsoft buying Skype?

The service is being used by more than one million users and 80,000 companies worldwide (that includes 80% of the Fortune 500). And the Yammer is doubling revenue every quarter.

GP007 said,
Yammer is big in enterprise space, it's private FB for enterprise. MS has it's own type of services that do the same thing but Yammer has the userbase. MS buys yammer and it's got millions of new customers, just like with skype but unlike that I doubt MS will keep yammer around as it's own division. MS will role yammer into it's own stuff, keep the brand ofc cuz it's a good one but it'll all run on sharepoint and stuff in the end.

It's just a nicer fit into MS's enterprise services/software compared to Skype.

Good to know. I will say that I work for a Fortune 50 (not a typo) company that has nothing to do with social, but I suppose it's hit or miss.