Microosft is reportedly working on a deal to acquire the social networking site Yammer, a report says.
According to Bloomberg, citing two unnamed sources “familiar with the matter,” Microsoft is in discussions to acquire Yammer Inc. which operates the Yammer social network primarily used by enterprise organizations.
One source of the publication, who has not been identified because of the confidentiality of the discussions between Microsoft and Yammer, said that the Redmond, Washington-bases software giant may pay more than $1 billion to acquire the social network.
Yammer has more than 200,000 companies using it which include big names such as Ford and EBay.
It was established by former PayPal Chief Operating Officer David Sacks in 2008. The site has raised over $140 million in funding from venture capital firms since its inception.
If Microsoft does buy Yammer, the acquisition will likely lead to more integrated social networking tools in Microsoft software (like its Office productivity suit) and sites.
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