Will This Acquisition Help Microsoft Break Into Social Media?

Microsoft (NASDAQ:MSFT) is likely to acquire Yammer Inc., a business software company for over $1 billion, according to a Reuters report.

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The deal, first reported by Bloomberg News, would enable Microsoft to ramp up its offerings for enterprise customers, given that almost 80 percent of Fortune 500 companies are clients of Yammer. Microsoft could also take advantage of Yammer’s social networking capabilities.

Yammer raised over $140 million in venture funding and is backed by Peter Thiel, an investor in Facebook (NASDAQ:FB) and the co-founder of PayPal (NASDAQ:EBAY).

No comments were available from either Microsoft or Yammer, though the transaction is expected to close by the end of June, according to the Bloomberg report.

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