MySQL Hits $50 Million Revenue, Plans IPO

An anonymous coward writes "MySQL, purveyor of the open-source database of the same name, is on the road to becoming a publicly traded company, bolstered by $50 million in revenue in 2006. "It's still in the pipeline," Chief Executive Marten Mickos said of the plan to hold an initial public offering of his company's stock. He declined to discuss when the company planned to go public, but said, "We're making good progress, doing all the things we need to get done.""

Comments

Re:interesting timing for an IPO

[martenmickos]

Thanks everyone for the comments! Let me first note that there was no specific news item in the article referred to at the top. We have had plans for IPO for several years. We don't see an IPO as an end-goal, but as a natural step in the evolution and growth of MySQL.
 
As many of you will know, when a company brings in venture capital (VC) as we did 6 years ago, you essentially set a plan to either be acquired or go public (IPO) after some time. We think that MySQL is a great business and one that can and should be independent and do an IPO at some point.
 
We share a passion for open source business - i.e. a passion to demonstrate what great businesses you can build on open source. And we want to provide the best database developers with great rewards: the good feeling of producing a product that changes the world, and the financial reward that comes with business success.
 
We have numerous users and customers ask us about buying MySQL stock. Today we are privately held and there are no shares for sale, but once we go public anyone can buy shares in our company. And being a public company we will have more strength to grow, to hire more great developers, and to serve new customers.
 
Does this make sense to you? It does to us.
 
Marten Mickos, CEO, MySQL AB

Re:Mickos?

[Anonymous Coward]

Nice try! Mr. Mickos is Finnish.

Re:interesting timing for an IPO

[martenmickos]

Here is my quick view of risks with going public, and how we are dealing with them:

Risk of being bought out. - The best protection against this is fast growth. If a company doesn't grow, then it is at risk of being bought no matter whether it is private or public, large or small. (So if you want to contribute to us - then refer us to as many paying customers as you can!)

Risk of company culture becoming too corporate-like. - We try to avoid this by being very focused on cultivating our unique values. We add more structure and more procedures all the time, but we also try to stay free from bureaucracy and we always encourage our employees to make bold decisions.

Risk of openness being at risk as a public company. - We make sure that all our investors (current and future) understand that the freedom of our software is vital to the success of MySQL. We also try to be open about everything else: bugs, plans, events, etc. But here we also know there will be something of a difference when going public: we will have to abide strictly by SEC rules and not disclose financial or other vital business information in any other way than publicly to everyone at given points in time.

Feel free to list more risks and I will be happy to address them.

Marten

Re:interesting timing for an IPO

[martenmickos]

For part of your questions, see my response to another question on this thread:
http://slashdot.org/comments.pl?sid=232285&thresho ld=0&commentsort=0&mode=thread&pid=18880831#188809 27

And here comes more risk analysis:

Risk of "pump and dump" investors driving MySQL strategy in the wrong direction. - Naturally a company will have to follow the instructions from its shareholders, but we believe that we have and will have strong and long-term investors who understand the value of strategic resilience. These investors will encourage us to invest in what gives the best value over time.

Risk of quick return to investors negatively affecting the MySQL entity or application. - I actually believe the opposite - that a successful IPO for MySQL will give us a boost in innovation and development. I believe that as a public company MySQL would attract even more innovative partners and brilliant employees.

Marten

P.S. I can of course be wrong in my risk assessments here and in other responses on this thread. That's why I post them for all of you to read - in the hope that you will provide your feedback and suggestions.

Re:Oh no...

[Bastard of Subhumani]

There's a world of difference. In a private company, the stock isn't publicly tradeable. This single fact is enough to strongly deter pump-and-dump and other forms of short-term thinking.