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SCO gets $50 Million Investment

Posted by ryuzaki0 on from the fuel-to-the-flame dept.

sjbe writes "It was announced today that SCO received $50 million in private equity funding. The lead investor is BayStar Capital which has invested in Roxio among other companies. This gives SCO a pretty big war chest to fight IBM. Before this investment SCO only had a few million in cash remaining. If you thought SCO was annoying before, this won't help."

1 of 491 comments (clear)

  1. More pump & dump by evocate · · Score: 0, Redundant

    Tuesday afternoon Deutche Bank "initiated coverage" of SCOX with a Buy rating. They said SCOX is basically a call option on the legal proceedings. If SCOX loses, they expire worthless. If they win, the leverage will be tremendous. In the minds of investors who understand options but not software, this sounds like a pretty good deal. At least until they find out how slim SCO's chances of beating IBM really are. Then SCOX's price will seem a high call premium by any valuation model.

    Today, another ringing endorsement from the financial world. Again, implying that this company is a safe and legit investment. But the press release is pretty thin: Baystar knows SCO is doing something with Unix, and they're suing people. The rest is Corporatese.

    I think this is the new pump & dump plan: 1. whip out high profile financial hired guns to tout the stock and suck in the herds, 2. give 'em the signal when it's time to jump ship (judgement imminent), 3. profit!

    no sig-r