David Sacks Departs Microsoft After Two-Year Transition Period
David Sacks, founder and former CEO of enterprise social network Yammer, announced his departure from Microsoft today. This move comes exactly two years after Microsoft’s landmark $1.2 billion acquisition of Yammer in June 2012.
Standard Post-Acquisition Timeline
Sacks’ exit follows a common pattern in tech acquisitions, where key executives typically remain with the acquiring company for a transitional period. Most employment contracts in such deals include two-year terms, often with performance-based earnouts. Sacks successfully completed this standard transition period.
Yammer’s Growth Under Microsoft
One year post-acquisition, Microsoft reported significant growth for Yammer:
- 55% increase in user accounts (surpassing 8 million total)
- 100% growth in paid networks
However, Yammer wasn’t mentioned in Microsoft’s most recent earnings report, signaling its integration into broader Microsoft offerings.
Strategic Integration with Office 365
Microsoft has systematically incorporated Yammer into its Office 365 ecosystem:
- Standalone Yammer available at $3/user/month
- Included in multiple Office 365 subscription tiers
- Recently expanded to more Office 365 SKUs at no additional cost
A Microsoft spokesperson noted Yammer now serves “more than 500,000 organizations” worldwide.
The Future of Yammer
Microsoft appears to be positioning Yammer as:
- A value-added component to enhance Office 365’s appeal
- A strategic tool to drive Office 365 subscriptions
- An integrated collaboration solution rather than a standalone product
Notable Industry Perspective
For those interested in Sacks’ views on innovation, his 2012 TechCrunch Disrupt discussion with Michael Arrington about “why innovation is dead” remains a thought-provoking industry commentary.
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