Yahoo's $350 Million Bust

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Yahoo (YHOO) is trying to sell Zimbra, the open-source email company it bought for $350 million in 2007. Kara Swisher reports potential buyers include Comcast, Google (GOOG), and private equity investors.

Zimbra is going on the block because Yahoo is re-focusing itself as a consumer-facing company. Yahoo is also trying to sell its HotJobs business for the same reason.

As we first reported, Yahoo will tomorrow launch a $100 million ad campaign that tells the consumer the “Y” in Yahoo, “It’s You!”

Before its acquisition, Zimbra was a whilte-label email software services provider with clients like Comcast (CMCSA) and a few Internet service providers. Google was a rival.

Zimbra founder and CEO Satish Dharmara quit Yahoo to join Zimbra-backer Redpoint Ventures earlier this year.

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