Microsoft has announced its intention to acquire Yammer for $1.2 billion in cash. The company will be part of the Microsoft Office Division and will be headed by the division President Kurt DelBene.
For those who are not aware, Yammer is an enterprise social networking service. Think of it as Facebook for the corporations. The company was started four years ago and currently has 5 million corporate users, which includes employees from 85 percent of the Fortune 500 companies.
Microsoft is saying that Yammer will continue to operate as-is for now but they are looking forward to incorporating the service in their products. The current Yammer team will continue to work from their San Francisco office and report to their current CEO David Sachs, who will report to Kurt DelBene.
Of course, the acquisition is far from complete and as usual will need to be approved by the various government bodies, although no information has been provided as to by when the acquisition process would be complete.