10 Tech Industry Questions Simmering In July

Why Did Microsoft Pay Such A Hefty Price Tag For Yammer?

$1.2 billion may seem like a lot to pay for a Facebook-like social networking site for businesses. In today’s competitive market, however, Microsoft is looking to make its presence felt in the social media market, since companies like Cisco and Oracle have already done so. Yammer is anticipated to fill gaps in Microsoft’s existing collaboration software, SharePoint, which was created in 2001 in a pre-cloud computing and social networking world. In the end, Yammer cost a lot less than the $8.5 billion Microsoft paid for Skype, and time will tell if it was a step in the right direction for the company.

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