Salesforce agrees to acquire Buddy Media for $745M

Enterprise cloud computing company Salesforce announced today that it will acquire social media marketing platform Buddy Media for $745 million in cash and stock.

With its page management, app development, analytics and Facebook advertising tools, Buddy Media is a strong addition to Salesforce’s “Marketing Cloud,” which already includes social listening platform Radian6. The acquisition is the largest one Salesforce has ever made and significantly larger than past deals involving social marketing software. Last month, Oracle reportedly bought Vitrue for $300 million, and in January, Adobe bought Efficient Frontier for $400 million.

Today’s announcement puts further pressure on SAP, IBM and other CRM businesses to add more social media capabilities to their enterprise platforms. As AllThingsD reports, Salesforce estimates the acquisition will increase its revenues for the second half of its 2013 fiscal year by $20 million to $25 million. Social marketing platforms like Involver, Syncapse and Wildfire could be potential targets for another company.

Although a press release listed the deal at $698 million, a regulatory filing indicates that it is actually valued at $745 million. The price for Buddy Media was likely driven up by its own recent acquisition of Brighter Option, which gives them a foothold in the growing Facebook Ads API business. Facebook told us last month that it would begin to sell premium homepage ad inventory through third-party vendors and tools. It is also becoming clear that the cost of reaching fans through Facebook pages is going to increase quickly over the next few years. Buddy Media is in a strong position to help companies run Sponsored Stories or Promoted Posts, and take a percentage of their spend.

Buddy Media was founded by Mike and Kass Lazerow not long after Facebook opened its platform in 2007. The company has about 1,000 customers, including some of the world’s largest brands and agencies: Ford, Mattel, IPG, Omnicom and others. In addition to being part of the Facebook Preferred Marketing Developer program, Buddy Media is a Google Engagement Solutions partner and LinkedIn Certified Developer.

Social Media 201

Mediabistro Course

Social Media 201

Starting October 13, Social Media 201 will provide you with hands-on instruction for gaining followers and engagement. Social media experts will teach you how to make social media marketing work for your bottom line and achieving your business goals. Register now!

 

Leave a Reply

2 Responses to “Salesforce agrees to acquire Buddy Media for $745M”

  1. In The News: Syncapse Acquires Clickable to Bring Ad Capabilities to its Social Marketing Platform says:

    [...] also makes Syncapse a more attractive target to be bought by an even larger company. Buddy Media recently sold to Salesforce for $745 million after acquiring Brighter Option in late February. Vitrue, which [...]

  2. Report: Salesforce cuts Radian6 staff 17 months after acquisition says:

    [...] Radian6 was acquired by Salesforce last year for $300 million. Salesforce then went on to buy Buddy Media for $745 million. [...]

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Social/PR Manager

Small, hot SoCal ad agency
CamarilloCamarillo, CA

Content Marketing / Sales

Mediaplanet
New York, NY

Marketing Manager

True North Custom
Chattanooga, TN

Press and Media Relations Manager

Americans for the Arts
Washington, DC

Social Media Manager (Pleasanton)

Avanquest North America
Pleasanton, CA

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us