Business Combinations

3 Months Ended

Sep. 30, 2012

Business Combinations

NOTE 8 BUSINESS COMBINATIONS

Yammer

On July 18, 2012, we acquired Yammer, Inc. (“Yammer”), a leading provider of enterprise social networks, for $1.1 billion in cash. Yammer will continue to develop its standalone service and will add an enterprise social networking service to Microsoft’s portfolio of complementary cloud-based services. Our purchase price allocations are preliminary and subject to revision as more detailed analyses are completed and additional information about fair value of assets and liabilities becomes available, including information relating to tax matters and finalization of our valuation of identified intangible assets. The major classes of assets to which we preliminarily allocated the purchase price were goodwill of $936 million and identifiable intangible assets of $178 million. We preliminarily assigned the goodwill to the Microsoft Business Division. Yammer was consolidated into our results of operations starting on the acquisition date.

Following are details of the purchase price allocated to the intangible assets acquired:

(In millions)			Weighted Average Life
Customer-related	$	77		6 years
Technology-based		67		4 years
Marketing-related		34		7 years
Total	$	178		5 years

Pro forma results of operations have not been presented because the effects of this business combination were not material to our consolidated results of operations.