Posted September 17, 2007 8:45 pm by with 12 comments

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image It seems Jerry Yang is determined to make sure his first “100 days” go out with a bang, with the announced acquisition of email and collaboration company Zimbra.

The $350 million deal will help Yahoo’s 10-year old email product evolve, while giving them a platform that works offline and can be hosted by companies.

“Our industry-leading communications products, including Yahoo! Mail, are critical to the future growth and success of Yahoo!,” said Jerry Yang, chief executive officer, Yahoo! in a press release. “Zimbra’s tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space. Additionally, Zimbra’s successful relationships with large ISPs are key as we expand our worldwide partner network and continue to focus on our commitment to being the partner of choice.”

Yang certainly seems intent on keeping Yahoo competitive with Google. Zimbra will help Yahoo compete with Google Apps foothold in corporate email and will give them an email client capable of working “offline”–something Google is rumored to be days away from announcing.

PS. We’re assuming the Google Custom Search box will be removed from Zimbra’s site very soon. 😉

  • Rupal Bansal

    I had always heard of Zimbra mail being a very good business solutions provider in addition to being an excellant paid email provider. Now that it’s been taken over by one of the pioneers in email servers and web portals, Yahoo!, am sure it’s going to be a killer combination. Globally, both were accepted as leaders in their respective field, together they’d have more to offer.

  • Ramana Rajgopaul

    A truly synergetic merger. Yahoo has tended to operate at the retail level and Zimbra from all accounts, has been more oriented to businesses. With this coming together, the field gets less crowded and, the standardization process gets speeded up.

  • I see the drive, intent, and action – but I want to see the synergy…. Purchasing to compete sounds nice, but execution is where it all counts.

  • Ranjapur

    Seems like the synergy is good, Yahoo! is also picking up Zimbra’s channel of 300+ partners who distribute and market the product to businesses and other organizations:

  • Pramath Malik

    Excellent move on Yang’s part. I feel they will get now have greater penetration into universities, ISPs and businesses, also Zimbra is ajax-based so it’s a step forward for Yahoo.
    Although the merger is to take place in the fourth quarter this year, I feel this will boost Yahoo’s stock rating in this quarter only.
    Yahoo can finally say… Yahoo!

  • I agree with the above that this seems like a good move with good synergy between companies.

    Yahoo mail has been losing ground recently so maybe this will be the boost it needs to grow again.

  • $350 million in cash and stocks thats how much it costs to compete with Google. All Yahoo can do now is cross it’s fingers and gain on lost ground. The strategy used by Yang is aggressive and will definitely give a Yahoo an excellent turn around….

  • vidhya

    It is a good combination and it will certainly pose a threat to Google. This is an excellent move by Yang. The strategy of Yang is aggressive and we have to wait for the results.

  • NTG (Natasha Khanna)

    Its too soon to predict how far yahoo’s acquisition of Zimbra is going to be successful in surpassing Google applications but the combining of yahoo and Zimbra communities will surely provide powerful competition. Provision of an offline email client has been a talk in the IT industry for a while now.
    The sooner they successfully provide an email client capable of working offline, the tougher the competition. All in all, a great chance to come out as the market leader.

  • Pingback: Yahoo! met overname Zimbra ook in Office applicaties | Zoekmachine Marketing Weblog

  • chrisat

    Its true two great leaders are definitely going to rule the world of internet more effectively.A good combination.

  • Geetha K C

    It is a good idea to have a platform that works offline. The technology of Zimbra will definitely improve the Yahoo mail. Let there be a healthy competition between the Good Old Yahoo and the Technologically Advanced Google!!!