Two of Salesforce.com’s most high profile “social media” acquisitions are showing signs of trouble. At Radian6, Salesforce.com is reported to be laying off “less than 100 people.” And at Buddy Media, the company amended its 8-K, which shows $20 million in net losses for the first six months of the year.
Salesforce.com acquired Radian6 in 2010 for $326 million and Buddy Media earlier this year for $689 million. The acquisitions were meant to complement each other with the two integrating and operating under the same umbrella. The news of the layoffs and the losses raises questions about how the work is going in combining the companies and integrating them into the Salesforce.com ecosystem.
A Radian 6 spokesperson wrote in an email today:
With the combination of Radian6 and Buddy Media, the Salesforce Marketing Cloud is the undisputed leader in social marketing and the only suite that allows brands to unify social listening, engagement, advertising and measurement. With the integration of Radian6 and Buddy Media, the Salesforce Marketing Cloud is re-balancing its resources to support its growth, including moving from a hub to a distributed model for certain customer-facing roles, consolidating marketing and dramatically increasing investments in R&D. Fewer than 100 people were impacted globally.
Buddy Media is another story. A Salesforce.com spokesperson would not comment on the losses, which total to $20.6 through the first six months of the year. The losses are countered to some degree by Buddy Media’s revenues which totaled $18 million, compared to $10 million in the first six months of 2011.