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Microsoft is paying $1.2 billion for Yammer and is folding the enterprise social networking vendor into its Office division.

[UPDATED at 1:14 p.m. PT]

The rumors were right. Microsoft announced on June 25 it has bought enterprise social networking vendor Yammer for $1.2 billion.

I doubt seriously whether Microsoft will be integrating any of Yammer's technology into Office 2013, as the client, server and services that are part of this wave are already quite far along in development. A public beta of Office 2013 is expected by many of us Microsoft watchers in July.

So many folks have asked me since the original rumor-go-round began why Microsoft would want Yammer. After all, Microsoft already has several partnership deals in place with Yammer and has its own social-networking technology built into SharePoint.

Here's the official statement from Microsoft as to why it's ponying up for the company:

(In my earlier speculation I wondered aloud whether Microsoft might be buying Yammer for similar reasons it bought Skype: It needed a cooler brand and wanted the cross-platform support. I still stand by those wonderings.)

As I blogged earlier this month, Microsoft was working on its own Yammer competitor, known as OfficeTalk. Last week, the Softies posted a downloadable case study which indicated that OfficeTalk is now nothing more than a Microsoft IT demo project.

When I asked Microsoft officials whether the company had decided against commercializing OfficeTalk after all, I received this response from a spokesperson: "Great ideas areas such as OfficeTalk, are always coming from The Garage. We have nothing new to share." (The Garage is a Microsoft internal incubator.)

Update: Here are a few additional tidbits from a call Microsoft and Yammer held for analysts and press about today's announcement:

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Microsoft acquires corporate social network Yammer for $1.2B