Yahoo will announce the acquisition of open source online/offline office suite Zimbra this evening, we just heard through a very solid source. The price: $350 million, in cash, confirmed.
Our coverage of Zimbra goes back to 2005. They gained wide exposure at the 2005 Web 2.0 Conference. Recently they launched offline functionality.
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’sblog post on the acquisition. And here’s the Yahoo official blog post.
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Very interesting development. Sounds like the professional open source space is heating up.
Roy
Magento - Professional Open Source eCommerce
http://www.magentocommerce.com
Wow. Zimbra is much better than goog office. This is a great buy in my opinion. Yahoo also has a much wider and loyal registered user base. It’ll be interesting to see how they integrate zimbra.
Are you kidding me? ZIMBRA is valued the as OPENWAVE? This is insanity. Granted, something is worth whatever the market will pay. But still, it’s insanity.
You really think Zoho’s next. Zimbra + Zoho = some real good stuff. I’ll wait and see.
I think IBM, sun, cisco or sap are more likely to have a run at buying zoho and take it to enterprise.
congrats to all involved looks like a good buy for yahoo.
as a yahoo employee in the trenches — i gotta say this is a great pickup for us…love it!
I’ve been following Zimbra for a while and think this is a great move on Yahoo’s part. Can’t wait to see how they integrate.
perfect fit - zimbra’s webmail client is over ajax’ed and slow, just like the yahoo mail beta.
http://mattishness.com/
I sure as heck hope they don’t plan on killing the open source in Zimbra. Otherwise, great move.
probably a good acquisition - this ruins my ideas though - that microsoft buys Yahoo! …
- Perhaps - Yahoo! is under estimated, then again it doesn’t help stock when your dirty laundry gets aired.
-.rb
Mathew, you are right, but that doesn’t mean it can not get better. It runs a little bit faster if it’s not put on your three year old PC that you’ve had in the basement with 128 megs of ram…
This will put an end to Zimbra using Google Search as the default. Downloading last Google Tarball!
uuuggghhh… this is bad news imo — zimbra is the best groupware suite out there — cross-platform (even for server), rich web client, integrated zimlets, outlook/isync connector, archiving and discovery, several hosted providers, free-open source edition, future IM and iPhone interface .. Yahoo will just ruin it, I know it will!!!
Heard, Microsoft is eyeing ThinkFree!
Wow… Yahoo is really throwing down the gauntlet this time.
Petieg - I don’t think Yahoo! ruined Flickr with its acquisition. Seemed to result in a better product all around. Perhaps the same will happen here.
We are not eyeing Think-free! We have our own cloud apps, thank you very much. All of these wannabes are unnerving me!
http://fakesteveballmer.blogspot.com
Head over to Yahoo!’s corporate blog (Yodel Anecdotal) for our take on it…
zoho to MSN. Thats my guess.
As someone who as worked with a big client who’s moving to Zimbra, I’m glad to see Yahoo! pick them up. I really hope they can fix a lot of the clunky UI issues and speed problems.
how big of a deal is to develop these on you own?
Will someone please emerge as the online documents leader. It would be nice to have all my docs (with full compatibility with MS Office) in one place.
Zimbra 5 will answer the documents question in a major way, due out next month, or soon after. Check out Zimbra briefcase. I just saw this, too, on the impact of the acquisition on Zimbra hosting providers and integrators: http://blog.01.com/?p=325
Yahoo once again shows why they are 2nd rate company.
… is Microsoft even reacting to some of this or what?
Congrats Scott ! Well deserved.
10 employess - all in india. Good going for international developers bringing so much value. This shows we are truly living in global delivery model.
I checked Zimbra out a few months ago for email and collaboration. My team and I liked it but it did not play with AFS, so we decided against it.
Congrats!!
If though bought Zoho that would be a scary combination now that they have bought Zimbra. Thanks for the heads up…very interesting news.
Somewhere in the comments on a Zoho article I commented about Yahoo buying them. One can still hope. Zoho has a few features that would integrate very well with current, and now new, Yahoo offerings.
electric cigarette making big splash in the states.
Yahoo would have acquired ZOHO if ZOHO would not have gone for Google Gears for offline capability of their apps.
Sounds like great news for the few other Office 2.0 players such as http://www.zoho.com http://www.thinkfree.com and http://www.contactoffice.com
Repent! Repent! *cough* I mean, well, we use Zimbra for all inter-office communication here– Here’s hoping nothing goes fruity.
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