Microsoft (MSFT) Buying Yammer for $1.2 Billion by TechStockProspector


Microsoft-for-Yammer deal could spark more M&A

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									Robert DeFrancesco’s
June 25, 2012

Microsoft (MSFT) Buying Yammer for $1.2 Billion
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Microsoft (MSFT, $29.67) today announced the $1.2-billion acquisition of privately
held Yammer, a provider of enterprise social software.

The all-cash deal will make Yammer a part of Microsoft’s Office unit. Launched in
2008, Yammer now boasts more than 5 million corporate users, including
employees at 85% of the Fortune 500 companies.

According to IDC, here are the largest enterprise social software vendors (ranked by
market share):

2-Jive Software (JIVE)
8-Yammer (Microsoft)
10-VMware-Socialcast (VMW)

Some are speculating that Jive Software (JIVE, $19.75) could go into play following
the Microsoft-for-Yammer deal. But Jive is not cheap, sporting a market cap of $1.22
billion, 10.8 times the 2012 consensus revenue estimate of $113.3 million.

There is a land grab going on right now as large tech companies seek to expand their
presence in the market for social solutions for businesses. Things are moving so fast
that the current strategy involves buying over building. For more on the key players
involved, check out the June 2012 issue of Tech-Stock Prospector.

For updates during the trading day, follow Rob on Twitter: @TechStockRadar


The June 2012 issue of Tech-Stock Prospector is available at (subscription required), in the Amazon Kindle store (this
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Here are some of the topics covered in the June 2012 issue:

*Valuing Facebook
*LinkedIn balances growth & valuation
*Social media marketing M&A buzzes
*The Salesforce/Oracle battle goes social
*Bazaarvoice quickly bulks up
*Mobile Megatrend Update: Qualcomm
*Imperva builds its pipeline
*Splunk delivers strong results
*Zillow sees growth in rentals
*Finding value in former highflyer Riverbed Technology
*Signs of accelerated growth at Cornerstone OnDemand
*Sourcefire set for expansion in networking security
*Why Big Data needs Teradata
*Infoblox knows your network
*A Yahoo sum-of-parts valuation
*TSP Deal Report: Citrix expands in mobile infrastructure

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Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street., launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

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