Wow. Yahoo! just bought open-source email provider, Zimbra, for $350 million. For anyone who still doubts that valuations for open-source companies are rising fast and steep, Zimbra is a case study rebuttal.
[UPDATED (sounded too negative before, and I didn't meant to be.] I don't know Zimbra's revenues, but the company is on track to hit $20 million this year. (This is actually pretty impressive, given the growth it would mean over the previous year, which was $6 million.) That's one heck of a valuation.
The real question is why Yahoo! would bother buying Zimbra, when it already has an equivalent Ajax-style email solution stemming from its Oddpost acquisition. Open source? Not in this case. I don't think open source was Zimbra's strongest selling point.… Read more