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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."
So what will happen? I say we're going to see a SCOX vs BayStar lawsuit. SCO likes lawsuits. They like to stall for time while talking shit to the press. It gives them time to dump stock gotten cheaply from options. We'll get more of that. Only this time, investor-types (people who matter as far as the stock is concerned) won't like it. Fucking around with your big investors? Now, that's something else compared to fucking around with a bunch of hippie nerds and IBM.
I assume the "SCO must have permission from BayStar to start lawsuits"-clause in the contract won't be a hindrance, since probably BayStar will start it :-)
If BayStar is able to get ~$20M back (20000 at $1000 plus interest and penalties), then maybe RBC want their part back... which would instantly kill SCOX dead, dead, dead.
suggested mod-limit: 3
Belief is the currency of delusion.
I wonder if this means that SCO will now sue Baystar?
And SCO is going to die by the sword. What is SCO going to do next take baystar to court?? The judge will put that money in a lien, and lock it down until the suit is over. Take away 2/3rd's of SCO cash and keep boise paid they will burn out of cash in 6 months. If they get a break in the court with IBM. If not the next few months will be fun.
It's been a Good Day.
i thought once I was found, but it was only a dream.
Ok, a bit conspiracy-theoryish, but many including myself have speculated that there was someone behind the scenes of the entire SCO mess pulling the strings.
Could it be that said string-puller has decided that there is too much risk that (a) SCO will not only lose its suits, but do so in a way that validates the GPL (b) IBM might break through the Canopy/Baystar corporate veil and find out who the string puller is? And therefore that person has taken some action to force SCO into bankruptcy and pull the plug on the lawsuits?
sPh
Maybe it was IBM instead of Microsoft behind the Baystar investment? :)
Yeah, it really ought to be "the Owner of a UNIX Operating System." since anything the Open Groups deems to be Unix IS Unix.
I don't know why, but for some reason I'm reminded of what I heard once about tornadoes.
It's not the high winds that damage a house, it's that sudden change of pressure that causes the house to explode from the imbalance.
"Provided by the management for your protection."
Using the link above, you can gain some additional insight.
IF you look at the sell orders (ASK) vs the buy (BID) orders outstanding, it tells a horrible story for people who own SCO.
Things to look for. What are people willing to pay for SCO, vs what people are asking to sell it. Compare both groups to the current asking price and you can see that most people who want to buy aren't the same as those who want to sell. People wanting to buy really know what the value is, while those people willing to sell are looking to squeeze a few extra $ out before cashing out.
Expect the $ to drop substantially. Then perhaps you might find SCO does get its wish and get bought out by someone. Although it would be fun just watching the ship sink into the abyss.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
If SCO goes bankrupt, this (I assume) goes in a legal round file somewhere. Then we can just wait for Microsoft to come at us directly with an army of lawyers that dwarfs IBM.
IBM was accused of not keeping their hands clean with contracts and licences. They will not rest until SCO's accusations have been completely and utterly discredited, even if it means flogging a dead horse. That they "ran SCO's war chest empty" simply won't do.
It has very little to do with the SCO case at all. IBM is relying on major contractors like military, government, major businesses selecting IBM because they are rock solid and trustworthy. That the data they entrust to IBM systems will be handled exactly as specified in contracts.
That, and I suppose some people in IBM would take a certain pleasure in doing it. But hey, if you can have both business and pleasure, why not?
Kjella
Live today, because you never know what tomorrow brings
This whole process has smelled of something not quite right.
Through the whole process, SCO's claims were bordering on ridiculous. Their antics rarely ever resulted in a stronger chance of being able to win the case.. they merely generated more publicity.
It looks to me like their only goal in the whole process was to create as much FUD about Linux and Free Software as they could. To get as much media coverage as possible, creating that seed of doubt in as many IT managers minds as possible.
The grand finale is when they cannot fund the lawsuit anymore, and close up shop. With no conclusion to the case, that cloud of FUD still hangs over Linux.
Yeah.. that's quite a conspiracy theory. It's probably more likely that the SCO people are merely morons. But, whether by design or by their ineptitude, I think that the death of SCO before resolving the case would be a bad thing.
In the last week there have been three Form 4's and two Form 144's. I'm sure the accused will offer a completely reasonable Martha Stewartesque explanation in their defence.
The subject tag deserves more attention than it is getting: why is Baystar doing it now?
Given the connections that Baystar has with MS/Paul Alen et al, There has to be an angle that makes it worthwhile for them. Also remember that it was SCO that issued a press release with this bit of info. When was the last time they issued a pr with any info that showed them in a bad light?
One possible scenario is that our friends at Canopy/MS have decided to pull the plug and bankrupt/kill SCO before IBM pierces the corporate veil and sends a bunch of execs to sing-sing (or at least gets a court to find them personally liable for SCO's misdeeds.)
cheers- raga
I worry that if the BOC joins in and asks for their $30M back, SCO goes bankrupt. If they go bankrupt, it's not like their lawsuits go away. Instead (IIRC, IANAL as usual) suits they filed are put on hold until after administration, while suits filed against them are voided with the option to re-file after administration. Stretching these out even more years wouldn't be a good result, I don't think. They need to be crushed in court.
Anyone who is a lawyer, or knows about corporate bankruptcy procedures, and can comment on this?
Are you guys all forgeting the MS + Baystar connection? The leaked memo? That shit totally fucked SCO over, MS wants out badly. There are serious legal implications for MS if a investigation shows they directly or even indirectly funded this. At least now, the company can claim plausable deniabilty.
Next time they'll be smarter though. The plan now is for SCO to back out before the GPL is held up in US court and for someone else to come in and carry the FUD torch against Linux. Its probably going to suit patent related.