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Yammer sells to Microsoft for $1.2 billion. Good call on skipping that IPO!

Yammer

The enterprise social network would do anything to avoid an IPO. And then along came Microsoft...

Yammer, based in San Francisco, is basically Twitter for business — although in the two roughly years since I regularly used it, it's evidently added some Facebook-esque features. It's been at the vanguard of "enterprise social networking," or bringing microblogging and social networking into the business environment. With the consumer space tapped out, this is where a lot of companies are looking to expand. 

Or, in Microsoft's case, acquire. Just for perspective, $1.2 billion is FAT valuation for Yammer. Remember Instagram, the year-and-half old photo sharing site with 13 employees that Facebook bought on the eve of its IPO for $1 billion? Yeah, that seems so long ago now...

Yammer sold for a little more than one "Instagram," in the new parlance of Silicon Valley. But more importantly, Microsoft bought the company for all cash. Instagram, by contrast, was a cash-and-stock deal, mostly stock. So Yammer's investors, who had put about $150 million into the startup, are going to see a very large payday, composed of actual money that they can use to either buy a second yacht or turn around and pour into other startup investments.

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