Yahooo Buys Zimbra For $350M in Cold Hard Cash

September 17th, 2007 at 12:00 am


While we were all disappointed with Yahoo’s "big Surprise" launch of Yahoo Teachers, they once again streal the stage.

Zimbra is an Ajax based web office suite with webmail, a desktop client, contact management, calendaring,word processing, spreadsheets, Salesforce integration, and a reportedly strong mobile component. (RWW)  Zimbra was recently involved in the attacks on Google Apps which make many speculate if Yahoo had anything to do with the whole thing.

Anywho, Zimbra started as a $30M investment from Benchmark Partners, Redpoint Ventures, Accel Capital, Sumitomo and Duff, Ackerman & Goodric.  They have 6 million registered users and recently went into a deal with Comcast. "Comcast was recently announced as a Zimbra customer, others in our neck of the woods include Digg and Mozilla. Zimbra made an announcement last October claiming that they had 4 million paying customers, though that number was widely questioned. Zimbra performance has also gotten mixed reviews, though some people love it."(Rear/WriteWeb)

What I don’t entirely comprehend is this, Yahoo has the most successful email platform with over 250 million registered users and a development team like no other.  Now why acquire Zimbra when they’re known for mail services?

Well,  I have to hand it over to Zimbra though, they are known to be the best email software in the market and so-so with the office suite.  My guess is, Yahoo acquired Zimbra for their own office suite and directly compete with Google Apps.  Yeah, that makes sense.