GO
Loading...

Microsoft Buys Internet Startup Yammer for $1.2 Billion

AP
Monday, 25 Jun 2012 | 3:25 PM ET

Microsoft is paying $1.2 billion to buy Yammer, an Internet startup that has built a social network similar to Facebook for the business world.

Microsoft
Mark Lennihan
Microsoft

The deal announced Monday comes nearly two weeks after word of Microsoft's negotiations withYammer leaked out in published reports.

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.

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, which is based in San Francisco, had raised about $142 million since its inception four years ago.

  Price   Change %Change
FB
---
MSFT
---

Featured

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.