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Yahoo is selling its open source email unit Zimbra to VMware. VMware is the global leader in Business Infrastructure Virtualization, delivers proven virtualization solutions - from the desktop through the datacenter and to the cloud - that energizes business.

Yahoo initially had bought Zimbra in 2007 for $350 million.� Due some reasons Yahoo is eager to sell it but has been unable to find any substantive bidders. Hence in order to the same Yahoo's CEO Carol Batz has approached VMware's CEO Paul Maritz.

As this innovative technology has been integrated into Yahoo’s popular email offering, it may have some complications in but Yahoo could easily license what it needs as part of the deal with VMware. Yahoo is now not interested in running Zimbra's white-label, open-source email commercial product, which serves the university and ISP markets.