News for hackers. Stuff that matters.
Re:Yahoo Acquires Zimbra For $350 million in Cash by SwellJoe on Monday September 17, 2007 @05:56PM (#55915)
I like these numbers. As someone pushing an Open Source based business along, Open Source businesses selling for huge prices is a nice thing for me to see...XenSource went for 500mil not more than a month ago. Zimbra 350mil. Both sit either side of us on the continuum of applications (and we've got a mail stack with webmail like Zimbra, though not as advanced, and a virtualization management product more feature-laden than XenSource have).

I'm gonna act like I don't know any of y'all when I'm cruising around on my mega-yacht. That's all I'm saying.

Re:Yahoo Acquires Zimbra For $350 million in Cash by prakash on Monday September 17, 2007 @03:36PM (#55863)
cool. now we can wait for 2010 before they integrate it into Y!mail -- considering yahoo bought oddpost in 2004 and it took 3 years for the new yahoo mail to come out of beta....
Re:Yahoo Acquires Zimbra For $350 million in Cash by cellis on Monday September 17, 2007 @04:11PM (#55877)
Oddpost -25 million. I remember that very well. Because it was on the cover of Business 2.0 - 'the new road to riches', or something like that.
Re:Yahoo Acquires Zimbra For $350 million in Cash by bharath on Monday September 17, 2007 @03:19PM (#55851)
Its interesting to see Google try and accomplish the same goals (marketshare in the online office space) through much smaller acquisitions (writely, zenter).
Re:Yahoo Acquires Zimbra For $350 million in Cash by aston on Monday September 17, 2007 @03:30PM (#55861)
Implicit suggestion here: That Yahoo's wasting their money.

Zimbra's a very mature product that's already making money. The company's also reasonably old. Compare that to Writely and Zenter, which were both purchased before large-scale release and while the companies were brand new. I think this is probably a pretty good buy for Yahoo.

Re:Yahoo Acquires Zimbra For $350 million in Cash by zandorg on Monday September 17, 2007 @04:22PM (#55885)
I think that with the figures Paul Graham gave us on Yahoo Store, that acquisition payed for itself around 2 years ago.
Re:Yahoo Acquires Zimbra For $350 million in Cash by pg on Monday September 17, 2007 @04:59PM (#55897)
All I know is what their revenues were. I don't know their costs, so I can't guess how long it took to pay for itself.
Re:Yahoo Acquires Zimbra For $350 million in Cash by ratsbane on Monday September 17, 2007 @06:36PM (#55930)
At the first Startup School in Boston someone mentioned that Yahoo Store had about 235,000 stores and $5 billion/year in store revenue, if I'm remembering correctly. The smallest available monthly fee(1) is currently $40 and the smallest transaction fee is 0.75% thus their annual revenue must be greater than (235000 x 40)+($5 billion x 0.75%)=$46.9 million. I'm guessing it's rather a bit more than that.

1) http://smallbusiness.yahoo.com/ecommerce/plans.php

Re:Yahoo Acquires Zimbra For $350 million in Cash by pg on Monday September 17, 2007 @06:43PM (#55933)
It is unlikely they have 235,000 stores. I would guess at most 30-50,000.
Re:Yahoo Acquires Zimbra For $350 million in Cash by ratsbane on Monday September 17, 2007 @10:48PM (#56059)
Now I'm curious about this. They list 71,245 under "shop by store."(1) However, I think this number may be low.

Are inactive stores listed in that directory? I'm sure Yahoo is billing for more than a few stores which never got beyond intentions.(2) We set up a test store a few hours ago "filmat16.com."(3) It's not been published yet so there's nothing there. It's also not listed in the directory by name (although this may be a function of time.)

If the $5b sales figure is correct (and I wish I could remember the original source of those numbers) and we use the 71,245 store count that's $70,180 per store/year. Reasonable?

Also my original estimate didn't take into account the (currently) $50 setup fee or fees for credit card processing (outsourced, but surely they make a bit from that), DNS fees, advertising revenue, etc.

In any case I think Yahoo has made rather a lot of money from their purchase of Viaweb - which is good for people creating startups which might be bought by Yahoo etc.

1) http://shopping.yahoo.com/stores/sd.html Is it reasonable to assume every store listed in that directory is a Yahoo store?

2) If that number is in any way related to the percentage of people who don't send back rebate forms it could be huge.

3) Not a completely for testing purposes; we're going to sell some 16mm films that have been sitting around in a closet for years. http://www.paulgraham.com/stuff.html

Re:Yahoo Acquires Zimbra For $350 million in Cash by pg on Tuesday September 18, 2007 @08:07AM (#56228)
> Is it reasonable to assume every store listed in that directory is a Yahoo store?

No. Any web store can be in Y! Shopping.

Re:Yahoo Acquires Zimbra For $350 million in Cash by ratsbane on Wednesday September 19, 2007 @01:37AM (#56733)
You're right. I see that now. I would like to understand better how many Yahoo stores there are, how many are inactive, how many use the different services Y provides (shipping, inventory, etc.) Is it fair to say that Yahoo hasn't added many features to the stores since Viaweb? There are a lot of functions which Yahoo store operators have to perform which Yahoo has never added provisions for.
Re:Yahoo Acquires Zimbra For $350 million in Cash by rms on Monday September 17, 2007 @04:24PM (#55887)
Really, what figures? I always figured Yahoo was making more than that... Yahoo Store is expensive and popular.
Re:Yahoo Acquires Zimbra For $350 million in Cash by falsestprophet on Monday September 17, 2007 @04:30PM (#55890)
I think the name alone is worth a hundred million.
Re:Yahoo Acquires Zimbra For $350 million in Cash by Goladus on Monday September 17, 2007 @08:36PM (#55973)
Do they mean cash as opposed to equity? I don't know much about business transactions of this nature, but "in cash" conjured up images of briefcases filled with unmarked bills.