Yahoo Acquires Zimbra For $350 million in Cash
Yahoo has announced the acquisition of open source online/offline office suite Zimbra and the price: $350 million, in cash, confirmed.
The company has raised $30.5 million over three rounds of funding from Benchmark Partners, Redpoint Ventures, Accel Capital, Sumitomo and Duff, Ackerman & Goodrich. They announced 6 million paid mailboxes back in March, and more recently inked a deal with Comcast that brings another 12 million potential subscribers.
This was a very, very smart acquisition. In one quick move Yahoo is now in the race with Google for the next generation online/offline office suite. I would not be surprised to see them pick up Zoho next. That is, if they really want to dominate own this space and be a credible threat to Google Docs.
Update: Here is the Yahoo press release and Zimbra CEO Satish Dharmaraj’s blog post on the acquisition. And here’s the Yahoo official blog post.
Source : http://www.techcrunch.com
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