Sun Buys MySQL for $1B

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I feel like this is becoming an M&A blog, but there been a lot of relevant M&A activity of late that I felt I needed to cover (e.g., Microsoft/FAST, EMC/Document Sciences).

Yesterday's big news (aside from Oracle / BEA for I think $8.5B) was Sun announcing that it would buy MySQL for $1B.

Frankly, this deal caught me by surprise.  I've been critical of Sun at times, but I think this is a smart move for them.  It continues their trend of trying to offer open source and/or cheap software tools (e.g., Star Office) that undermine incumbents in large markets.  And it will help them transition to from a wounded workstation and server company to something else.  What "something else" is I'm not sure.  I am sure, however, that they can't stay still, so in a sense any motion represents potential progress.

Schwartz is an active CEO blogger (gotta love that), so he has written his own extensive post on the deal, here.  Excerpts:

we're putting a billion dollars behind the M in LAMP




Information Week covers the deal here.