VMware To Acquire Yahoo’s Zimbra Unit?

Yahoo is reportedly close to selling its Zimbra unit to VMware, according to several sources ‘close to the situation’ told AllThingsDigital blogger Kara Swisher.

Her sources said the deal could be announced soon, and that the price for the open-source email unit, though still unclear, will likely be much lower than what Zimbra fetched when Yahoo bought the  startup in late 2007 for $350 million in cash.

Swisher also writes Yahoo has been unsuccessfully trying to sell Zimbra for several months now. Still according to ATD, Yahoo CEO Carol Bartz personally approached VMware boss Paul Maritz after the web giant failed to attract substantial bids from other outfits.

If the report turns out to be correct, why do you think VMware would be interested in buying the open-source e-mail unit, and do you think it’s a good move for them to make?

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I'm a blogger, entrepreneur, conference organizer, social media consultant, startup advisor and allround web addict, based in Belgium, Europe. I'm a writer at TechCrunch and managing editor of Virtualization.com.

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