San Francisco cloud-computing powerhouse Salesforce.com Inc. has announced the buyout of social-media company Buddy Media Inc. for $689 million.
Salesforce agreed to pay $467 million in cash for the New York company, along with providing $184 million in Salesforce stock and $38 million invested options and restricted stock units, for a total of $689 million. Buddy Media's board has already agreed to the deal, which is expected to close in the fall quarter.
The deal will help San Francisco-based Salesforce, "deliver the first comprehensive marketing cloud that will allow customers to listen, engage, gain insight, publish, advertise and measure social marketing programs."
Founded in 2007, Buddy Media has almost 1,000 customers, including Ford Inc., L’Oreal, Hewlett-Packard Co. and Mattel Inc. Buddy Media offers social media analytics for some of the biggest brands in the world including Ford and Hewlett-Packard and together with Salesforce’s Radian6 it will power Salesforce’s Marketing Cloud.
As more companies promote themselves on Facebook, Twitter and other social media, Salesforce has been looking to add more products that can help its customers manage their marketing campaigns. Salesforce which has more than 100,000 customers made software designed to make it easier for companies to track their current customers' needs and identify new sales opportunities.
Salesforce is looking to handle not just traditional duties of managing the sales process but it is building “social marketing cloud” for branding, social media interactions and marketing. With a more robust set of social tools, companies can understand what customers are saying, buy ads and tweak their social campaigns to better interact with their customers. They can also apply all the data they’re gathering through social channels — from customers’ brand preferences, purchase habits and lifetime value — to inform their decisions.
Combined with the Radian6 products that Salesforce acquired last month, Salesforce will be able to deliver a package that lets customers "engage, gain insight, publish, advertise and measure social marketing programs," Michael Lazerow, CEO and co-founder of Buddy Media, said in a blog post.
April 22, 2013, 5:55 am UTC
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