(26 Jun 2012 1:28 pm)

MUMBAI: Microsoft has agreed to buy out the internet start-up Yammer in a deal worth $1.2 billion.

Launched in September 2008, Yammer is an enterprise social network service. It is used for private communication within organisations or between organisational members and pre-designated groups. It has five million users of its private, in-company social networks with companies like Ford Motor and Deloitte as customers.

Yammer will join the Microsoft Office Division, led by division president Kurt DelBene. The team will continue to report to current CEO David Sacks. Yammer's office will remain in San Francisco.

Microsoft CEO Steve Ballmer said, "The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love. Yammer adds a best-in-class enterprise social networking service to Microsoft's growing portfolio of complementary cloud services."

Yammer will continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences. Moving forward, Microsoft plans to accelerate Yammer's adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.

Sacks added, "When we started Yammer four years ago, we set out to do something big. 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 scale and innovate."