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Microsoft in talks to buy social software company Yammer

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Microsoft(s msft) is reportedly in talks to purchase Yammer, which could be a significant move by the venerable software company to add a social dimension to its products.

Bloomberg’s sources say Microsoft could pay more than $1 billion as soon as Friday to acquire Yammer, which makes an enterprise social networking site that looks very similar to Facebook for the corporate environment.

Yammer just raised $85 million in its most recent round of funding in February, with its total funding reaching $142 million at that time. Acquiring Yammer would provide Microsoft with a set of social networking tools that could make an interesting companion for the Microsoft Office software already popular with corporate clients.