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Microsoft to buy collaborative software company Yammer

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Redmond, Wash.—Microsoft Corp. is acquiring enterprise social software company Yammer Inc. for $1.2 billion to ramp up its social media capabilities. Yammer, based in San Francisco, enables private collaborative communications within organizations or designated groups and is available as a “freemium” as well as a paid upgrade. It functions like social collaborative tools such as Salesforce.com's Chatter and Jive Software's Jive Engage. The acquisition is expected to augment internal networking already offered via Microsoft's own SharePoint collaboration product, bundled with large-business versions of its Office productivity suite.
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