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TECHNOLOGY NEWS
June 18, 2012 12:00:00 AM
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Microsoft has reached a deal to purchase the Yammer business software company for $1 billion in an apparent bid to shore up its widely-used Office software, the Wall Street Journal has reported.

The Journal said it was unclear when the acquisition would be completed, and neither Microsoft nor Yammer could immediately be reached for comment.

Yammer, known as the Facebook of the workplace, creates private social networks inside companies that allow for file-sharing and other applications, and is thus a potential threat to Microsoft's business software dominance.

If the deal is completed, it would be the second time in a little over a year that Microsoft buys up a younger company on its way to an initial public offering, the Journal said.

In May 2011, Microsoft purchased Internet voice and video leader Skype for $8.5 billion dollars -- its largest purchase ever -- in a move aimed at boosting its presence in an online arena dominated by Google and Facebook.

Skype announced late last month that it hopes to quadruple its number of users to one billion, through mobile customers and partnerships with Facebook and other firms.

AFP

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