Post made by Sam on the SDL Forums:
Going forward SDL 1.3 will be under licensing terms that are compatible with open source and commercial projects, the zlib license:
Galaxy Gameworks will no longer be selling licenses to SDL, but will continue to support our existing customers.
SDL development will continue, but will largely be community driven and Ryan and I will continue to coordinate patch integration and SDL releases. We will be working to make it easier to contribute in a variety of ways, and are looking for people interested in helping out.
Oh, and Google Summer of Code is on!
Original link here: http://forums.libsdl.org/viewtopic.php?t=7148
More information regarding Galaxy Gameworks here: http://slouken.blogspot.com/2011/04/exploring-galaxy.html