Yahoo Buys Zimbra for $350M in Cash
Yahoo (YHOO) has purchased web-based email provider Zimbra, Kara Swisher is reporting. Mike Arrington has Om distracted judging at his TechCrunch40 conference, but says the price is $350 million.
Update: We just talked to a company spokesperson who confirmed the deal and the purchase price, adding that it was mostly in cash.
Yahoo had only just rolled out a major overhaul to its popular mail service, based on its $30 million acquisition of Oddpost in 2004.
When Om gets out, he’ll add to the story. In the past he had called Zimbra “email done right” and “quite impressive actually.” Some of us use it internally at GigaOM.
Zimbra had some six million users as of May. Yahoo Mail has more than 250 million.
Zimbra has raised about $30 million, and recently did a deal with Comcast (CMCSA) to offer its services to Comcast’s 12.5 million broadband customers.