MySQL: is it IPO bound?

For many years, Oracle Corporation (NASDAQ:ORCL) has been the dominant player in the database business. Yes, it is a great space, with large contract sizes and long-term customer relationships. But, there is certainly competition, such as from MySQL AB. MySQL uses an open source approach to develop its software. This means the source code is available for download and programmers – from across the world – can make the product better.

This week, MySQL announced the annual results (the company has been around for 11 years). In all, the company snagged about 2,500 new customers (the total customer count is about 10,000). And now it looks like the company is prepping to go public (this is according to a piece in the Computer Business Review).

True, the company does not need money -- it recently raised $18.5 million. However with the comeback of tech IPOs, it does look like the timing is right. Alternatively, this may be a way for MySql to drum-up interest in a buyout. No doubt there would be interest from Oracle, as well as its competitors such as Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM).

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.