Sun buys MySQL for $1 billion

Apple Online StoreSun Microsystems, Inc. today announced it has entered into a definitive agreement to acquire MySQL AB, an open source icon and developer of one of the world’s fastest growing open source databases for approximately $1 billion in total consideration. The acquisition accelerates Sun’s position in enterprise IT to now include the $15 billion database market. Today’s announcement reaffirms Sun’s position as the leading provider of platforms for the Web economy and its role as the largest commercial open source contributor.
With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that will change the landscape of the software industry by driving new adoption of MySQL’s open source database in more traditional applications and enterprises. The integration with Sun will greatly extend the commercial appeal of MySQL’s offerings and improve its value proposition with the addition of Sun’s global services organization. MySQL will also gain new distribution through Sun’s channels including its OEM relationships with Intel, IBM and Dell.

“Today’s acquisition reaffirms Sun’s position at the center of the global Web economy. Supporting our overall growth plan, acquiring MySQL amplifies our investments in the technologies demanded by those driving extreme growth and efficiency, from Internet media titans to the world’s largest traditional enterprises,” said Jonathan Schwartz, CEO and president, Sun Microsystems, in the press release. “MySQL’s employees and culture, along with its near ubiquity across the Web, make it an ideal fit with Sun’s open approach to network innovation. And most importantly, this announcement boosts our investments into the communities at the heart of innovation on the Internet and of enterprises that rely on technology as a competitive weapon.”

MySQL’s open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL’s database reach and are expected to bring new markets for Sun’s systems, virtualization, middleware and storage platforms.

“The combination of MySQL and Sun represents an enormous opportunity for users and organizations of all sizes seeking innovation, growth and choice,” said Marten Mickos, CEO, MySQL, in the press release. “Sun’s culture and business model complements MySQL’s own by sharing the same ideals that we have had since our foundation — software freedom, online innovation and community and partner participation. We are tremendously excited to work with Sun and the millions of members of the MySQL open source ecosystem to continue to deliver the best database for powering the modern Web economy.”

MySQL’s open source database is the “M” in LAMP – the software platform comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the foundation of the Internet. Sun is committed to enhancing and optimizing the LAMP stack on GNU/Linux and Microsoft Windows along with OpenSolaris and MAC OS X. The database from MySQL, OpenSolaris and GlassFish, together with Sun’s Java platform and NetBeans communities, will create a powerful Web application platform across a wide range of customers shifting their applications to the Web.

More than 100 million copies of MySQL’s high-performance open source database software have been downloaded and distributed and an additional 50,000 copies are downloaded daily. This broad penetration coupled with MySQL’s strength in Web 2.0, Software as a Service (SaaS), enterprise, telecom and the OEM embedded market make it an important fit for Sun. With MySQL, Sun will have the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease-of-use of open source systems.

Following completion of the proposed transaction, MySQL will be integrated into Sun’s Software, Sales and Service organizations and the company’s CEO, Marten Mickos, will be joining Sun’s senior executive leadership team. In the interim, a joint team with representatives from both companies will develop integration plans that build upon the technical, product and cultural synergies and the best business and product development practices of both companies. MySQL is headquartered in Cupertino, CA and Uppsala, Sweden and has 400 employees in 25 countries.

As part of the transaction, Sun will pay approximately $800 million in cash in exchange for all MySQL stock and assume approximately $200 million in options. The transaction is expected to close in late Q3 or early Q4 of Sun’s fiscal 2008. Completion of the transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to be accretive to FY10 operating income on a GAAP basis.

Source: Sun Microsystems, Inc.

25 Comments

  1. You need free open source? PostgreSQL is a much better database than MySQL.

    You don’t care if it’s open source? Go for Oracle XE.

    You need a commercial product? Go for Oracle.

    MySQL is OK for a shopping cart, but I don’t think it will ever be at the level of Oracle or PostgreSQL, Sun involved or not.

  2. Lose vs. Loose:

    The adjective loose, meaning ‘not tight,’ should not be confused with the verb loose, which means ‘let go’:: they loosed the reins and let the horse gallop. This verb in turn should not be confused with the verb lose, which means ‘be deprived of, fail to keep’: | I will lose my keys if I don’t mend the hole in my pocket.

  3. Indeed better Sun than microsh*t. Can you imagine what microsh*t would turn the dolphin into??? Belly up, bloated, rotting, floating in a backwater cesspool, choked and drowning on its own excrement.

    MySQL is a a very good product (fabulous price too): way better than microsh*t’s sql server (proof of the power of open source)…guess it goes to show you if you can’t beat ’em, buy ’em!

    Sun are cool anyway -> they gave use Java! (while its not strictly open source, its a LOT more useful than microsh*t copy: c# -> can’t realistically run c# programs on linux/osx with anywhere near the ease of Java- I find that swing GUI interfaces run very, very nicely on OSX).

  4. “Today’s acquisition reaffirms Sun’s position at the center of the global Web economy.” – Jonathan Schwartz, CEO and president, Sun Microsystems

    Wonder what Copernicus and Galileo would have to say about that…

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