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Microsoft buys Yammer for $1.2 billion

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Daniel Payne

6/26/2012 3:06 PM EDT

RIP Yammer, my condolences to all the fine people who worked to build Yammer up ...

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chanj

6/26/2012 11:47 AM EDT

"That shift is threatening to weaken Microsoft's position as the world's largest ...

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Microsoft agreed to buy online social network firm Yammer for $1.2 billion in cash, which will allow the software company to offer a service like Facebook's to corporate customers.

Talk of a deal had circulated earlier this month, but the two companies only confirmed the deal on Monday.

The acquisition represents Microsoft's latest attempt to adapt to a major shift in the technology industry, one that is fueling demand for more Internet services and social networking tools. That shift is threatening to weaken Microsoft's position as the world's largest software maker.

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chanj

6/26/2012 11:47 AM EDT

"That shift is threatening to weaken Microsoft's position as the world's largest software maker." The article didn't elaboration further why the shift would threaten to weaken MS's position as the world's largest software maker.

MS was primarily making OS at the beginning. Very soon, Gates realized computer wouldn't get popular unless there were enough applications going along with it. MS has been buying various software companies and, successfully transforming and integrating the technology into its core.

Social networking is the trend. Whether it will become the main stream in productivity environment is still a work in progress. Nonetheless, I have noticed a shift of work force of using messengers to communication instead of walking over to the other office or making a internal phone call. Who knows? Social networking may become not only a collaboration tool but also "facilitating" a brain storming session.

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Daniel Payne

6/26/2012 3:06 PM EDT

RIP Yammer, my condolences to all the fine people who worked to build Yammer up to this point. Microsoft acquisitions tend to die within a year or two, maybe with Yammer it will be different. I know of at least one EDA company using Yammer, so it will be interesting to see if they can see or feel a difference in product direction, features, support or vision.

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