This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Salesforce Buys Buddy Media For a More Social World

Stocks in this article: CRM ORCL SAP

NEW YORK ( TheStreet) -- Salesforce.com (CRM - Get Report) is buying Buddy Media for $689 million as the customer relationship management (CRM) giant eyes social media dollars.

Buddy Media, which counts Ford (F), HP (HPQ) and L'Oreal amongst its customers, help firms exploit their social media marketing with a technology platform that measures the effectiveness of firms' efforts and lets them test new initiatives.

Salesforce.com has announced a deal to buy Buddy Media

Rumors that Salesforce.com was eyeing Buddy Media have swirled for weeks, and the San Francisco-based firm is now flexing its social media muscle.

Salesforce.com, which is one of TheStreet's top tech stocks for 2012, is ramping up its efforts against cloud rivals Oracle (ORCL - Get Report) and SAP (SAP - Get Report). In particular, the company is charging hard around what it describes as its "social enterprise" strategy, essentially harnessing the power of social networking for the corporate world.

The Buddy Media deal follows Salesforce.com's purchase of Radian6 last year, which now forms the basis of its Radian6 social monitoring cloud, aggregating data from the likes of Facebook, YouTube and Twitter.

Other Salesforce offerings in the "social enterprise" space include Chatter, a private social network for companies which is being deployed by the likes of Verizon (VZ) and GE (GE).

The Buddy Media deal adds a key string to the Salesforce.com social media bow, according to CEO Marc Benioff. "Salesforce.com now has the number one players in social listening and marketing - Radian6 and Buddy Media," he explained in a statement. "With CMOs surpassing CIOs in spend on technology within the next five years, our Marketing Cloud leadership will allow us to capitalize on this massive opportunity."

The social enterprise message certainly seems to be resonating with customers at a time when businesses are attempting to harness the power of social networks.

Salesforce.com, which was recently upgraded by Oppenheimer on the strength of fast organic growth, shredded Wall Street's estimates in its fiscal first-quarter results last month.

Salesforce.com also delivered more than 52 billion social enterprise "transactions" during the first quarter, a 72% hike compared with the same period last year. The company's shares are up more than 26% this year.

"Salesforce.com's investment in social so far has reaped tremendous benefits as the company uses its 'social enterprise' message to engage with key decision makers and to drive much bigger deals," noted JMP Securities analyst Pat Walravens in a note released last week. "Buddy Media is a remarkable asset, in our view, that grew bookings over 200% in 2011 and would make salesforce.com the leader in the social marketing category."

Benioff's firm will pay approximately $687 million in cash and Salesforce.com equity for Buddy Media. The acquisition is expected to close during the third quarter of Salesforce.com's fiscal 2013, which ends on Oct. 31.

Salesforce.com shares were down 0.7% to $130 early Monday as the tech sector dipped into the red.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs