Microsoft reportedly in $1 billion deal for Yammer

First, rumors began to spread that such an acquisition was imminent. Now a source tells The Wall Street Journal that the tech giant has agreed to acquire the business software company.

Microsoft has agreed to acquire business software company Yammer for more than $1 billion, a person familiar with the matter told The Wall Street Journal.

The report did not indicate when the acquisition is expected to be announced or completed.

Yammer representatives declined to comment. CNET has also contacted Microsoft for comment and will update this report when we learn more.

San Francisco-based Yammer is sort of like Facebook for companies: employees can post, share, and discuss items. It's become an integral tool for many startups, but it's also big among larger businesses. More than 80 percent of Fortune 500 companies use Yammer. If Microsoft buys Yammer, the move could help the tech titan modernize with social-enterprise tools.

Rumors of a Microsoft buyout began to surface yesterday when Business Insider reported that several people near Yammer's San Francisco headquarters were overheard discussing the acquisition. In addition to a woman tweeting that she had also overheard similar talk at a coffee shop near Yammer's offices, a source "inside Yammer" told Business Insider that a deal was near.

About the author

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers.

 

Join the discussion

Conversation powered by Livefyre

Show Comments Hide Comments
Latest Galleries from CNET
Best mobile games of 2014
Nissan gives new Murano bold style (pictures)
Top great space moments in 2014 (pictures)
This is it: The Audiophiliac's top in-ear headphones of 2014 (pictures)
ZTE's wallet-friendly Grand X (pictures)
Lenovo reprises clever design for the Yoga Tablet 2 (Pictures)