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Yahoo to Unload E-mail Provider Zimbra on VMWare

By: Rick Blythe | Date: January 5, 2010 | Categories: VMware, Zimbra

Here is a headline I did not expect to see in the news this morning: "Exclusive: VMware Likely to Buy Zimbra From Yahoo".

One of the divisions that’s been on Yahoo’s auction block since September is Zimbra, an open-source e-mail company Yahoo acquired in September 2007 for $350 million.

According to All Things Digital, Yahoo is about to finalize a sale to VMware. Yahoo had originally hoped that the Zimbra acquisition would help improve Yahoo Mail and give the company a foothold into the white-label e-mail business, but that synergy never really came about. What VMware wants with Zimbra is a good question.

One source noted that the reason that VMware was interested in nabbing Zimbra was that its execs want to expand “up the stack” from the software company’s position in virtualization.

What that means raises more questions than answers. There’s no word on the sale price yet, and until the deal is final, it’s still technically up in the air.

Some more context around this here

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