Microsoft is buying a highly successful business that actually produces real revenue and profit. What makes you think they didn't do an due diligence and instead just threw a number like 1.2 billion out? You have no evidence of this, and it makes absolutely no sense.
As a MSFT shareholder I have no problem with them doing this given that Yammer had between 50-100 million in revenue last year and dominates their market.
>> As a MSFT shareholder I have no problem with them doing this given that Yammer had between 50-100 million in revenue last year and dominates their market.
As a MSFT shareholder, I am interested in how they came to the 1.2B price. Between 50-100 million in revenue? Actualized revenue does grow and shrink. It is a fixed number. That is quite a spread. They might very well dominate their market, but how much is the market worth? What is its upside?
I imagine Microsoft took the intrinsic value of Yammer and added a stab at the value of the impact on Microsoft if a competitor, say, Google bought Yammer.
There's just too much we don't know, meaning that any comment we make here amounts to little more than meaningless speculation. Unless someone has a credible source?
As a MSFT shareholder I have no problem with them doing this given that Yammer had between 50-100 million in revenue last year and dominates their market.