Yammer agrees to sell itself for $1.2 billion | WPN World People News

Software giant Microsoft is buying Yammer, a business software company, for $1.2 billion.

By this acquisition, Microsoft will try to plug holes in its ubiquitous Office software, according to a report in Wall Street Journal.

The report said "a person familiar with the matter" confirmed "Yammer Inc agreed to sell itself to Microsoft Corp for $1.2 billion".

However it is not clear when the acquisition will be completed and announced formally.

A Microsoft spokesman declined to comment on the Wall Street Journal report as representatives for Yammer also didn't react.

Yammer is often called Business Facebook for the workplace because it creates private social networks inside companies.

Launched in 2008, Yammer also has file-sharing tools and other software.

According to the reports a sale of Yammer validates a cadre of young companieswhich includes Box Inc., Jive Software Inc. JIVE 2.52% and Basecampthat are vying to shake up the ways people work.

Some of the new arrivals, like Yammer, are trying to replace existing tools for digital messaging or keep up with to-do lists. Start-ups such as Dropbox Inc. give workers new ways to store files online or edit them together with co-workers.

Source: US News.Net