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Yahoo is selling Zimbra to VMware

4:37 am on Jan 6, 2010 (gmt 0)

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WebmasterWorld Administrator bill is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

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After purchacing Zimbra in 2007 of $350 million [webmasterworld.com], it appears Yahoo will be selling the company to VMware:

VMware Likely to Buy Zimbra From Yahoo [kara.allthingsd.com]

Yahoo is close to selling its Zimbra unit to VMware, according to several sources close to the situation.

Sources said the deal could be announced soon, but the price for the open-source email unit was still unclear.

But the price, sources said, is much lower than what Zimbra fetched when Yahoo bought the Silicon Valley start-up in late 2007 for $350 million.

Yahoo has been trying to sell Zimbra for some months now, but it had not attracted enough substantive bidders. According to one source, Yahoo (YHOO) CEO then approached VMware (VMW) CEO Paul Maritz, whom she knows well from their years as tech execs.


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