Yahoo! Buys Zimbra for a Whopping $350 Million

Email software developers taken into the Yahoo! fold

by Rupert Sharp
of http://www.oyster-web.co.uk

Last updated: 19 Sep 2007

Has Yahoo! gone wonky? Yahoo! has only finished major updates to its email service Yahoo! Mail which has proven itself to be well worth joining up for, but this does not seem to be enough for Yahoo! as they have spent an unbelievable amount of money for the open source email software specialist company Zimbra. The presumed reason for this move was to access the three markets that Zimbra has been doing very well in, they are universities, business's and Internet service providers. With Zimbra joining the Yahoo! gang the Yahoo Mail client is sure to have more improvements applied to it over the next few months, but is it really worth it?

Whether Yahoo! know it or not $350 Million is a lot of money considering their own mail client wasn't doing so bad for itself. There is another discussed possibility that Yahoo! bought Zimbra for its staff who are apparently exceptionally well trained and experienced, already there is rumours of certain members being uplifted to important areas of Yahoo!, it looks like it's more for the management than the email client itself.