TechCrunch is reporting that Yahoo has acquired the office suite Zimbra for $35MM in cash. If this news is confirmed, its huge. Yahoo is laying down the gauntlet here, to Microsoft, and especially to Google.

Is this a smart decision? Should Yahoo play Google’s game again? The web office space is still young (and Zimbra has offline functionality as well), so the take here is that this is a smart move for the company to get back some of its lost mojo.

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