BayStar Cashes Out of SCO Stock

Kurt Wall writes "According to Yahoo! Finance, BayStar, the company that funded SCO to the tune of $50,000,000, and then later changed the terms of the deal, has requested that SCO redeem the 20,000 shares of preferred stock issued in return for the funding. The reason? BayStar states that 'SCO has allegedly breached Sections 2(b)(v), 2(b)(viii) and 3(g) of the Exchange Agreement.' Naturally, SCO thinks it has done nothing of the sort."

Comments

Re:The future for SCO

[Locutus]

Wasn't publicly determined that Microsoft was the one who put BayStar and SCOG together? Well, another company loses millions by listening to Microsoft. Serves em right for not knowing what kind of deal they were going to get when a Microsoft exec opens his/her mouth.

Maybe two birds get hit with this "stone". One, SCO gets no 2nd chance of added financing and two, businesses see who bad ANYTHING tied to Microsoft can be.

Also, BayStar is probably getting wacked by it's investers no doubt. But since SCOG lied again and BayStar bought it is reason to blame BayStar for this. After all, it's been in the press about who owns the right to the UNIX name and that it was not SCOG.

LoB