MySQL Named As Possible Acquisition Target

    June 6, 2006

As corporations continue to merge, sell out, and gobble each other up, analysts have identified the next likely targets in the software world: MySQL and Linux.

Speculation on possible MySQL buyers remained vague, while Oracle was named as a strong candidate to integrate with Linux.

“I think MySQL is very natural because they have grown to a certain size, certain profitability, and have a certain proof point on the market segment,” said Winston Damarillo, chief executive of Simula Labs, a venture fund that is focused on open-source investments.

MySQL falls into Damarillo’s purview – it provides open-source database software, and is considered by some a low-cost alternative to companies such as Oracle and IBM.

MySQL was actually in talks with Oracle earlier this year, although the possible deal fell through. Still, a merger with a corporation of that scale is possible.

“It’s fairly natural for a big database company or a second-tier player who wants to expand in the market, and companies like MySQL are good targets for that,” Damarillo said.

Marten Mickos, the CEO of MySQL, is downplaying the possibility of a buyout. “It’s great to be seen as an attractive company, but we are focused on serving our customers and building a huge, profitable business.”

Conversely, the CEO of Oracle started rumors when he spoke of wanting to acquire Linux technology. This idea was more heavily frowned-upon than the possibility of a MySQL merger. “Oracle needs to be in the Linux business like they need a hole in the head,” said Billy Marshall, chief executive of the software appliance company rPath.

On the whole, though, it looks like more mergers may be on the way. Whether that’s a good thing for investors, consumers, or even the corporations themselves remains to be seen.

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Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.