Yahoo’s ‘Net Proceeds’ From Sale Of Zimbra: $100 Million

Yahoo (NSDQ: YHOO) made about $100 million on the sale of its Zimbra enterprise e-mail and communications platform to VMWare in January; the companies had declined to release financial terms when the sale was initially announced but in its just-filed 10-Q Yahoo says it recorded “net proceeds” of $100 million and a “pre-tax gain” of $66 million on the sale.

Those numbers reemphasize just how poor Yahoo’s acquisition track record has been. The company paid $350 million for Zimbra just two-and-a-half years ago. Almost from the day the purchase was announced, questions were raised about why Yahoo was buying the company, since Zimbra didn’t seem to fit with Yahoo’s consumer-centric focus.