Microsoft to pay $1bn+ for Yammer: report

Summary:Microsoft is set to pay over US$1 billion to purchase enterprise social network firm Yammer, according to a report.

Microsoft is set to pay over US$1 billion to purchase enterprise social network firm Yammer, according to a report.

According to the Wall Street Journal, an unnamed source who is familiar with the alleged deal has come forward and confirmed that Yammer has agreed to Microsoft's bid to purchase the social media site for a sum that is in excess of US$1 billion.

Any official details of the deal are yet to be announced by either company, with Yammer declining to comment on the matter and Microsoft not responding to requests for comment at the time of writing.

The new information echoes earlier claims by Bloomberg, which said that the companies were in negotiations and also reported the $1 billion figure.

Initial rumours of a deal came from a single tweet from San Francisco resident Sarah Taylor, who posted on Twitter that she overhead talks of the acquisition in a cafe.

The US$1 billion valuation puts it on par with Instagram, which was bought by Facebook for the same figure in April. Some may debate over whether the price tag is appropriate, but Yammer has been busy in recent times. Earlier this year in April, it purchased file-sharing and collaboration firm oneDrum and, in November last year, it rolled out several upgrades to its platform.

ZDNet US's Eileen Brown argues that the deal will make sense, with Yammer complementing the existing features of Microsoft Lync. Yammer would also bridge a gap between Lync and SharePoint, in Brown's opinion. Yammer already has experience integrating with Microsoft products, having done so with Microsoft Dynamics earlier this year.

Yammer has gained popularity among a number of big Australian enterprises, such as Aristocrat, Westfield, Deloitte, AMP and Earth Hour, but has also found use in smaller start-up spaces, like the York Butter Factory, which uses it to organise dialogue between residents.

Topics: Microsoft, Social Enterprise

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A Sydney, Australia-based journalist, Michael Lee covers a gamut of news in the technology space including information security, state Government initiatives, and local startups.

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