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Sun paid far more than what MySQL was actually worth. Sun bought MySQL with no real cohesive goal in terms of how it would integrate it or monetize it and with the amount they bought it for, there really was no way to recoup the costs. And, after acquiring it, they didn't really have the resources to handle it. The purchase price was just the tip of the iceberg in developing a real product.
Sun isn't a huge fan of open source and they didn't have the internal resources to do this. Sun paid a lot for a lose-lose acquisition.
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