IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Yahoo buys web email company Zimbra

$350 million purchase sees Yahoo get access to web email technology currently used by universities, ISPs and many mid-size businesses.

Yahoo appears to have plans for expanding its already vast 250 million Yahoo Mail user-base by purchasing Zimbra, a maker of open source software for web-based email, for $350 million (175 million) in cash and stocks.

Zimbra, based in California, produces email software used by more than 1,300 universities, internet service providers and small and medium size businesses.

The four-year old start up provides its nine million paying customers with an email account and similar utilities such as group-calendars and document-sharing offerings.

"Zimbra's tremendous talent and innovative technology will help to extend our core mail offerings, further strengthening our strong leadership position in this space" said Jerry Yang, chief executive of Yahoo.

The move not only shows Yahoo's desire to cement its place as a leader in email, but to stay on par with its rivals Microsoft and Google, the latter recently announcing the launch of a web-based presentation application that will compete with Microsoft's PowerPoint software.

Featured Resources

The state of Salesforce: Future of business

Three articles that look forward into the changing state of Salesforce and the future of business

Free Download

The mighty struggle to migrate SAP to the cloud may be over

A simplified and unified approach to delivering Enterprise Transformation in the cloud

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

The Total Economic Impact™ Of IBM FlashSystem

Cost savings and business benefits enabled by FlashSystem

Free Download

Most Popular

Cyber attack on software supplier causes "major outage" across the NHS
cyber attacks

Cyber attack on software supplier causes "major outage" across the NHS

8 Aug 2022
Why convenience is the biggest threat to your security
Sponsored

Why convenience is the biggest threat to your security

8 Aug 2022
Electrical explosion reported at Google's Iowa data centre
data centres

Electrical explosion reported at Google's Iowa data centre

9 Aug 2022