Salesforce.com (NYSE:CRM) has beaten out other tech biggies for a deal that may be the newest signal that social media marketing is the next big buzz. The company announced on Monday that it had completed its acquisition of social media marketer Buddy Media in a nearly $700 million cash-and-shares deal.
Buddy Media helps customers publish content and measure the effectiveness of social media marketing programs, helping companies including Hewlett-Packard (NYSE:HPQ), Mattel (NASDAQ:MAT), Ford (NYSE:F), and L’Oreal maintain a presence on social networks like Facebook (NASDAQ:FB), Twitter, LinkedIn (NYSE:LNKD), and Google+ (NASDAQ:GOOG).
Cloud computing firm Salesforce.com reportedly faced competition from Google for the deal. A few weeks ago, enterprise services rival Oracle (NASDAQ:ORCL) agreed to buy out another social media marketing player, Virtue, after having considered purchasing Buddy Media.
According to a release from the company, the deal will help Salesforce “deliver the first comprehensive marketing cloud that will allow customers to listen, engage, gain insight, publish, advertise and measure social marketing programs.”
Salesforce cut its adjusted full-year profit to $1.45 to $1.49 per share, from $1.60 to $1.63 per share, to factor in charges from the deal. The company raised its revenue outlook to $2.99 billion to $3.03 billion, from $2.97 billion to $3.00 billion. The deal is expected to be completed during the third quarter.
Last year, Salesforce had purchased Radian6, which also helps businesses measure their effectiveness on sites like Facebook and Twitter.