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MICROSOFT GETING INTO SOCIAL NETWORKING
Tuesday June 26, 2012 : MICROSOFT GETING INTO SOCIAL NETWORKING
Software giant buys Yammer for $1.2 billion
With the social gaming trend growing rapidly, most online gambling companies are watching developments in social networking closely. Perhaps predictably, Microsoft is coming to the party with the acquisition of Yammer for $1.2 billion in cash, announced Tuesday.
Industry experts predict that the acquisition will allow Microsoft to offer a service like Facebook's to corporate customers. They point out that 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.
San Francisco-based Yammer has been operating for the past four years and has some 5 million users of its private, in-company social networks. It will become part of Microsoft's Office unit under Kurt DelBene but will still be led by current Chief Executive David Sacks.
Last year, Microsoft bought Internet video chat service Skype for $8.5 billion in the biggest acquisition in the company's 37-year history.
Yammer plans to continue offering a standalone service, while Microsoft will encourage its use alongside its other business products, including Office and SharePoint.
"When we started Yammer four years ago, we set out to do something big," Sacks said this week.
"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 upscale and innovate."
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