UPDATE: Salesforce.com to Acquire Buddy Media for $689 Million
Deal to close during Salesforceâ€™s fiscal third quarter ending October 31.
After the news broke via AllThingsD last week, Salesforce.com officially announces it will acquire Buddy Media for approximately $689 million, paid in cash and salesforce.com equity. According to Salesforceâ€™s website, the deal is expected to close during the companyâ€™s third fiscal quarter ending October 31, 2012.
While AllThingsD had originally pegged the deal at $800 million (while other sources predicted a higher price tag), the social media marketing company will be sold for $467 million in cash, $184 million in salesforce.com common stock and $38 million in vested salesforce.com options and restricted stock units.
Buddy Media will be combined with Salesforceâ€™s other recently purchased property, social media â€ślistening platformâ€ť Radian6 to â€śdeliver the first comprehensive Marketing Cloud that will allow customers to listen, engage, gain insight, publish, advertise and measure social marketing programs.â€ť
The deal is expected to bring in an additional $20 to $25 million in revenue for Salesforce during fiscal year 2013.Â
Like Salesforce, Buddy Media has made a name for itself throughout the magazine industry. Prevention used Buddyâ€™s services to add sweepstakes and newsletter registration to its Facebook page, while Hearst partnered with the company to create branded social media applications (â€śsappletsâ€ť) for several of its titles.