Case | HBS Case Collection | May 2013

Yammer (A)

by Mikolaj J. Piskorski, Kerry Herman and Aaron Smith

Abstract

In Spring 2012, Yammer was on track to become a highly successful standalone company. Yammer was a leading Enterprise Social Network (ESN), providing companies a private social network in which employees could collaborate securely and efficiently. However, later that year, Microsoft executives unexpectedly reached out with an offer to acquire Yammer for $1.2 billion and integrate Yammer into the Microsoft Office division. An integration with Microsoft would have a profound effect on Yammer's scalability, software development, and organizational culture. David Sacks, CEO of Yammer, debated the challenges and opportunities related to competition, product, and culture as he thought about the offer on the table.

Keywords: Technology Networks; Opportunities; Software; Organizational Culture; Problems and Challenges; Management Teams; Integration; Decision Choices and Conditions; Social and Collaborative Networks; Acquisition; Information Technology Industry;

Citation:

Piskorski, Mikolaj J., Kerry Herman, and Aaron Smith. "Yammer (A)." Harvard Business School Case 713-407, May 2013.