6 June 2012
Salesforce signals social intention with $689 million Buddy Media acquisition
Salesforce.com, the cloud computing company confirmed its acquisition of social enterprise technology company Buddy Media for $689 million USD. In contrast, on 23 May, Oracle its competitor confirmed the acquisition of cloud-based social media marketing and engagement platform Vitrue for a reported $300 million USD, so these are the current front runners. Even in a global recession its clear that social media is high on the agenda for technology firms keen on investing in the potential of the channel, now and in the future.
Founded in 2007, Buddy Media was created to help brands and agencies to optimise social media marketing campaigns across resources like Facebook, Google, LinkedIn, Twitter and YouTube. With its other recent acquisition being social media monitoring tool Radian6, Salesforce.com has further strengthened its social credentials in being able to measure and manage social media activity.
"Salesforce.com now has the number one players in social listening and marketing – Radian6 and Buddy Media," said Marc Benioff, chairman and CEO of salesforce.com. Benioff continues, "With CMOs surpassing CIOs in spend on technology within the next five years, our Marketing Cloud leadership will allow us to capitalize on this massive opportunity."
In the press release issued and its conference call, Salesforce.com states that: “It will acquire Buddy Media for approximately $467 million in cash and $184 million in salesforce.com common stock, and $38 million in vested salesforce.com options and restricted stock units.” Salesforce.com expects the deal to be completed within three-months and finalised at the end of October.
The recent acquisitions and IPOs of technology companies have been under much scrutiny, now more than ever and has some watchers are rightly wondering when the tipping point will be. The Salesforce.com move may be a shrewd move, but for others such as Russian social network Vkontakte, confidence isn’t so high, resulting in it putting its IPO on hold based on the Facebook share rise and consequence fall.
According to Bloomberg, Salesforce.com doesn’t appear to be the only technology makers eyeing this space with Oracle Corp, SAP AG and others snapping up or looking to acquire social media specialists. The space continues to intensify demonstrating the importance of social media to technology makers with Oracle upping the yet ante again announcing the acquisition of cloud-based intelligence company Collective Intellect yesterday, in which the financial terms were not disclosed. Simply the firm helps organisations transform social conversations into actionable decisions responding from social networks such as Facebook and Twitter.
For these types of technology superpowers the direction will most certainly include integrating software and a service (SaaS) into business generation, development and marketing, so this could be a taster of what to come.
A replay of the conference call will be available until 04 July, 2012
+1(800) 585-8367 or +1(855) 859-2056, passcode: 87397859, with the audiocast available from http://www.media-server.com/m/p/q4wdbzf8.
In the meantime, the chatter around Buddy Media isn’t all about the almighty dollar. In an inspirational video from CEO its Michael Lazerow, “A New Beginning - Is Fear Holding You Back?” he shares how after being born with a heart defect and a near-death experience focuses him to live without fear encouraging others to contemplate the same.
A New Beginning - Is Fear Holding You Back?
A version of this article first appeared on Technorati.
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