Yahoo to upgrade e-mail service with Zimbra purchase

Posted by Mark Raby

San Francisco (CA) - Yahoo has announced it will acquire Zimbra, a software company specializing in custom e-mail applications.

Zimbra offers numerous webmail features that Yahoo would assumedly use to give it some competitive advantage over Google's Gmail service.  Zimbra's service include integrated calendar and mobile applications that work hand-in-hand with an e-mail account.  

Additionally, users can get specific info from an e-mail by just moving their cursor over the subject title in their inbox.  For example, mousing over an e-mail headline for a shipping confirmation will bring up a window with the package's tracking number.

Zimbra also allows users to check their previously read e-mail while offline.  It currently offers branded e-mail service to a couple hundred different educational and business partners.

Yahoo vice president Brad Garlinghouse was quoted in a News.com story as saying that Zimbra's features "illustrate the commitment to areas we feel are core strengths."

According to media reports, Yahoo will purchase the company for around $350 million.