Business Week reports that Salesforce has purchased Buddy Media in a $689 million deal. The move is meant to allow Salesforce to offer expanded cloud computing services to its customers.
Many more companies resort to social media because these are the most used methods of promotion at present. Facebook, Twitter and other Internet- based channels of communication give companies the possibility to gain visibility in the online space. Salesforce decided to make a deal with Buddy Media in order to make things easier for companies.
The software company is determined to give customers the possibility to better promote their online campaigns. According to Salesforce’s spokespersons, the software was designed to help companies track their customers’ needs and to identify the future sales opportunities. Buddy Media, on the other hand, is a New York-based company helping customers create content for social media sites and measure the effectiveness of their online campaigns.
According to Michael Lazerow, CEO and co-founder of Buddy Media, Salesforce, Buddy Media and Radian6 will team up to offer a wider range of cloud computing services. He wrote on his blog, on Monday that the new package lets customers “engage, gain insight, publish, advertise and measure social marketing programs”.
The $689 million deal between the two companies represents a breath of fresh air for Salesforce. The software enterprise has been the first to offer cloud computing services and they needed to refresh their offer in order to respond to clients’ needs. The money will be paid in two rates; the first one will amount to $467 million cash, whereas the second sum of $184 million will be paid in common Salesforce stock. The remaining $38 million will be paid in options and restricted stock.
The news that the two companies have signed a deal encouraged businessmen to invest in Salesforce. The stock price increased with 23 cents and thus, the company sold its shares for $131.22 on Monday. Given the recent transaction, the enterprise had to revise its fiscal 2013 report. Analysts are now expecting Salesforce to register increases of $1.45 to $1.49 per share to the revenue of $2.99 billion to $3.03 billion.