This is a read-only archive. Find the latest Linux articles, documentation, and answers at the new Linux.com!

Linux.com

Feature: Business

SCO acquisition wrap-up

By Lisa Hoover on February 19, 2008 (9:00:00 PM)

Share    Print    Comments   

The SCO Group was offered a sweetheart of a deal on Valentine's Day last week when Stephen Norris & Co. Capital Partners (SNCP) gave the embattled Unix vendor $100 million to bail itself out of bankruptcy. The company's CEO, Darl McBride, isn't feeling the love, however. When the deal closes, he'll "resign immediately."

Already angered by McBride's claims that Linux contains code that belongs to SCO, many in the Linux community were overjoyed when the company filed for Chapter 11 bankruptcy protection in September. Now, a company once thought to be at the end of the line seems poised to walk another mile.

According to the press release, SNCP's plans include "enabl[ing] the company to see SCO's legal claims through to their full conclusion." Pamela Jones, editor of the popular legal Web site Groklaw, has been following the situation since it's earliest days and , "That's code, I think, for 'this will enable the company to continue to attack Linux'."

Details of the agreement between SCO and SNCP are beginning to emerge and, according to an InternetNews.com story by Sean Michael Kerner, SCO will receive only $5 million upfront, with the rest available on an as-needed basis. Interestingly, intellectual property attorney Mark Radcliffe tells ComputerWorldUK.com $5 million is just what SCO needs to proceed with the copyright lawsuit it initiated against Novell.

Kerner goes on to say that the deal hasn't been officially cemented yet; the US Bankruptcy Court must approve it by April 28. When and if that happens, McBride will be bounced out the door right away. If the deal is not approved, SCO's bankruptcy proceedings continue as planned.

Datamation's Roy Schestowitz notes that for a company with such a troubled and checkered past, it's a mystery why anyone would want to come forward and help rescue it from certain death. "Why would anyone invest in SCO?" he asks. "More importantly, why now?"

Groklaw's Jones may have an answer. She suggests a connection between the new investors and Microsoft's Bill Gates.

In the end, though, all the hype may be just that -- hype. Jim Zemlin, executive director of The Linux Foundation, says all the theories and conjecture are just navel-gazing. In fact, he says the whole story is nothing more than "a speculator picking the bones of a defunct company. The facts of the SCO case haven't changed; the Linux industry is stronger than ever."

Share    Print    Comments   

Comments

on SCO acquisition wrap-up

Note: Comments are owned by the poster. We are not responsible for their content.

SCO acquisition wrap-up

Posted by: Anonymous [ip: 68.12.20.5] on February 19, 2008 09:55 PM
My understanding is that SCO is getting a $5 million investment. (Hardly enough to pay off even Novell by itself.) And an attached offer for a loan of up to $100 million, at a whopping 20% annual interest. And to get that, Darl has to resign. One can only assume that if the 20% interest is not payed on time, someone gets their legs broken for them. It's like a bad "Get Christy Love!" episode.

#

SCO acquisition wrap-up

Posted by: Anonymous [ip: 65.88.88.34] on February 19, 2008 09:56 PM
Die SCO Dieeeeee

#

SCO acquisition wrap-up

Posted by: Anonymous [ip: 76.26.186.230] on February 20, 2008 08:07 AM
Dam can't you read the whole thing.. before you post this crap..

#

SCO acquisition wrap-up

Posted by: Anonymous [ip: 194.206.146.249] on February 20, 2008 10:04 AM
But a juge said that SCO don't have intellectual proprety on Unix.
How could SCO countinue against Novell ?

#

SCO acquisition wrap-up

Posted by: Anonymous [ip: 207.81.243.119] on February 20, 2008 04:12 PM
This is bad news. It seems to me that it makes perfect sense from a strategic point of view to nix the existing CEO if you have plans of claiming incompetence to an appeals court--and then start the whole bloody thing over again. As has been mentioned, the people taking interest in SCO are not "businessmen" in the traditional sense, but instead are seeking ONLY to cash in on a long and hard-fought trial. Once the "business" model is thrown out, there's no consequence for fighting dirty and I would fully expect the interested parties to do just that--win at any cost.

#

This story has been archived. Comments can no longer be posted.



 
Tableless layout Validate XHTML 1.0 Strict Validate CSS Powered by Xaraya