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Give Me a M: The MySQL/Sun Q&A

Jan 17, 2008, 23:30 (1 Talkback[s])
(Other stories by Stephen O'Grady)

"Q: Isn't that valuation a bit high? What was the multiple?
A: Given that MySQL was a private company, actual revenue figures were consigned to the realm of speculation. One analyst on this morning's call estimated $60-80M, which obviously puts the acquisition multiple up there. I heard a lot of folks questioning the valuation this morning, and I'm sure that more will in the days ahead. My guess is that the acquisition price was as much a function of the potential returns of a public offering as it was the current revenue picture, but that's all it is: a guess. All of that said, understand that I am not a capital markets expert, and my coverage doesn't extend to that arena. Like Tim, I still find it counterintuitive--on a superficial level, anyhow--that it cost Oracle better than eight times that to acquire BEA..."

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