Welcome!

CRM Authors: Xenia von Wedel, Ian Khan, PR.com Newswire, Steve Mordue

Related Topics: Agile Computing, Microservices Expo, Containers Expo Blog, @CloudExpo, CRM

Agile Computing: Article

Salesforce to Buy Buddy Media for Social CRM

Buddy Media lets marketers manage their presence on social sites like Facebook, Google, LinkedIn, Twitter and YouTube

As rumored last week, Salesforce.com Monday said it's going to buy Buddy Media for roughly $689 million in cash and stock.

Buddy Media lets marketers manage their presence on social sites like Facebook, Google, LinkedIn, Twitter and YouTube. They can publish content, place social advertising, measure the effectiveness of their social media marketing programs, determine which content is driving the most engagements, test different strategies and isolate the campaigns delivering the best ROI.

Salesforce already owns Radian6, a so-called social media listening platform, and will merge the two platforms together in its Marketing Cloud so it can offer the entire social marketing lifecycle.

Salesforce said it got interested in Buddy Media after Gartner predicted that CMOs will spend more on IT than CIOs by 2017 - and 15% of whatever they plunk down will be for CRM.

That may also explain why Oracle bought Buddy Media rival Vitrue a couple of weeks ago for what TechCrunch said was $300 million.

Buddy's nearly 1,000 clients include Ford, HP, L'Oreal, Mattel, eight of the top 10 global advertisers and ad agencies like Interpublic and WPP, an investor. Salesforce said it was attracted by the size of its major customers.

All Things Digital said last week that Buddy Media spurned an offer from Google to go with Salesforce.

Salesforce said it will pay approximately $467 million in cash and $184 million in common stock and $38 million in vested options and restricted stock units.

It calculates that the acquisition, expected to close by the end of October, should add $20 million-$25 million in revenue to its current fiscal year but cut earnings by 14 cents or 15 cents a share. As a result it tweaked guidance for the year to $1.45 to $1.49 on approximately $2.99 billion-$3 billion, less than the $1.63 on ~$3 billion Wall Street was already expecting.

Buddy Media raised $90 million in financing since getting started in 2007 from Softbank, Greycroft, Bay Partners, Institutional Venture Partners, GGV Capital, Zynga CEO Mark Pincus and VCs Ron Conway and Peter Thiel.

The Financial Times made the observation that Facebook, which Salesforce CEO Marc Benioff called the "new corporate homepage," lets companies market on its platforms for free, leaving Buddy Media, Vitrue and others like them make money on its free tools. Facebook, by the way, closed at an all-time low Monday: $26.90

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get tailored market studies; and more.
After years of investments and acquisitions, CloudBlue was created with the goal of building the world's only hyperscale digital platform with an increasingly infinite ecosystem and proven go-to-market services. The result? An unmatched platform that helps customers streamline cloud operations, save time and money, and revolutionize their businesses overnight. Today, the platform operates in more than 45 countries and powers more than 200 of the world's largest cloud marketplaces, managing mo...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
When Enterprises started adopting Hadoop-based Big Data environments over the last ten years, they were mainly on-premise deployments. Organizations would spin up and manage large Hadoop clusters, where they would funnel exabytes or petabytes of unstructured data.However, over the last few years the economics of maintaining this enormous infrastructure compared with the elastic scalability of viable cloud options has changed this equation. The growth of cloud storage, cloud-managed big data e...
Your applications have evolved, your computing needs are changing, and your servers have become more and more dense. But your data center hasn't changed so you can't get the benefits of cheaper, better, smaller, faster... until now. Colovore is Silicon Valley's premier provider of high-density colocation solutions that are a perfect fit for companies operating modern, high-performance hardware. No other Bay Area colo provider can match our density, operating efficiency, and ease of scalability.
ScaleMP is the leader in virtualization for in-memory high-end computing, providing higher performance and lower total cost of ownership as compared with traditional shared-memory systems. The company's innovative Versatile SMP (vSMP) architecture aggregates multiple x86 systems into a single virtual x86 system, delivering an industry-standard, high-end shared-memory computer. Using software to replace custom hardware and components, ScaleMP offers a new, revolutionary computing paradigm. vSMP F...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...