Finally, after many rumors of a (big) upcoming IPO, MySQL AB has been acquired by Sun for 1$ billion instead. MySQL had raised a total of $39 million from Benchmark, Index, IVP, Intel, and SAP.

Sun CEO Jonathan Schwartz wrote about the acquisition on his blog:

“But the biggest news of the day is… we’re putting a billion dollars behind the M in LAMP. If you’re an industry insider, you’ll know what that means – we’re acquiring MySQL AB, the company behind MySQL, the world’s most popular open source database.”

He said the acquisition would position Sun at the center of the web, as the definitive provider of high performance platforms for the web economy, for startups and web 2.0 companies, to government agencies and traditional enterprises. (hmm, long list!)

Anyway, this will inspire startups with similar business models – running a free open source project and bolting for-pay services. Congrats MySQL!

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