An $800M Buddy Media Acquisition Would Be Worth 8X Its Current Revenue

Salesforce.com is acquiring Buddy Media, in the largest social marketing acquisition to date, according to sources close to the company are confirming. AllThingsD reported earlier today that Salesforce is getting close to a deal for more than $800 million, and we’d heard acquisition rumors too, though Buddy Media declined to comment. Now our sources say the price is considerably higher, more in the neighborhood of $1 billion.

If the acquisition happens in that price range, the deal would would be an impressive multiple given Buddy’s current revenue run rate. As of last year, Buddy was projecting a run rate of $100 million for 2012 and $180 million for 2013, we hear, compared to a 3x multiple in Vitrue’s $300 million acquisition by Oracle. The difference? Supposedly that Buddy has built more of a technology platform, whereas Vitrue’s is closer to an ad agency. Buddy also has an impressive client list, saying it works with eight of the world’s top 10 brands. CEO Michael Lazerow previously told us that revenue grew 2.5x in 2011 and that the company expanded from 100 to 225 employees in that period.

AllThingsD says that Facebook or an ad holding company like WPP (a Buddy investor) seemed like possible acquirers, but as the Vitrue acquisition illustrated, it’s not just the obvious companies looking to get more involved in social media. In fact, Salesforce purchased social listening platform Radian6 last year.

Buddy has raised $90 million in funding from SoftBank Capital, Greycroft Partners, Institutional Venture Partners, European Founders Fund, Bay Partners, WPP, GGV Capital, Insight Venture Partners, and a number of high-profile angels including Peter Thiel and Mark Pincus.

And here’s an interesting connection: Buddy recently hired former Salesforce executive Susan St. Ledger as its new president.