VMWare / Yahoo Deal Reportedly Near

 |  Includes: VMW, YHOO
by: The Deal Economy

Yahoo Inc.'s (NASDAQ:YHOO) Zimbra, the online e-mail and calendar unit that has been rumored to be on the block for months, might be nearing a deal. All Things Digital reports Monday that a rather unexpected buyer, virtualization technology company VMware Inc. (NYSE:VMW), is nearing an agreement to buy the unit.

Zimbra was acquired by Yahoo for $350 million in late 2007, after co-founder Jerry Yang had returned to take the helm of the struggling search company and well before he was replaced by current Yahoo chief Carol Bartz. Zimbra is one of many units Bartz put on the block in an attempt to slim the company down. Other assets for sale include Yahoo's small-business hosting division and its HotJobs classifieds unit.

Citing sources "close to the situation," All Things Digital said the Zimbra sale would help VMware expand "up the stack" from its more traditional virtualization offerings. - Olaf de Senerpont Domis