Sun Microsystems, Inc. (NASDAQ: JAVA) will be buying open-source database software company MySQL AB for about $1 billion, both companies announced this morning. MySQL, based in Sweden, makes a very popular database application used by global nameplates we all recognize such as Google (NASDAQ: GOOG), Nokia Corp. (NYSE: NOK) and Facebook, Inc.The deal includes an $800 million cash payment by Sun and $200 million in options to arrive at the billion-dollar total. MySQL CEO Marten Mickos said "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."
Sun's movement into the open-source software universe recently has signaled a huge shift in its strategy under current CEO Jonathan Schwartz.
In addition to announcing the MySQL purchase, Sun said that it expects net income for the December quarter to increase from 2006's December quarter result of $133 million. For the quarter ending December 30, 2007, Sun expects net income in the range of $230 million to $265 million. Also, the company expects to grow revenue about 1% to $3.6 billion.
Sun's commitment to the open-source community largely began in 1999 when it acquired StarOffice, which has now evolved into a complete set of office productivity software known as OpenOffice. It's available for free and competes directly with Microsoft Corp. (NASDAQ: MSFT)'s Office product. Microsoft's product does cost money.
[The author holds a long position in MSFT]
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