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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."
Talk on the boards is that the breaches are due to SCO not revealing the entire story regarding their claimed 'ownership' of UNIX SysV. Notice SCO now states that UNIX is a registered trademark of The Open Group.
In any case, looks like you live by the sword you die by the sword. It was after all Darl who stated "Contracts are what you use against parties you have relationships with". None of this using contracts to clarify just what each other's purposes are, and being a record of an agreement, they're to be used as weapons. SCO's breaches are what will come bite them on the ass, and nothing will save them with a contract that they can't hide way back in the muddying of time. $20million worth of redeemed stock is $20million SCO can't use against Linux, Customers, Ex Customers or whoever else has tried to be nice to them in the past.
It's only a few hour's drive to Lindon from here. I wonder if I should go watch the fireworks.
Shak's nude anime gallery
Before anyone gets the wrong idea, plase note, these are PREFERRED shares, not the normal one's you see quoted prices on...
These shares value is set at $1000 each... so this is quite a big chunk out of SCO's warchest...
Happy day!
Never ask a geek why, just nod your head and slowly back away. -Rob Malda
Woo, SCO's stock is down 10.56% already. What a great time for a shrewd investor to buy SCO stock at bargain prices!
I'm weeping on the inside.
I have a "Zero Policy" tolerance.
*/
Always the first to leave a sinking ship
more about me
Watch it fall in near-real time! Go go go! Ahhh... this makes my day :) At time of posting, last trade was 8.68. Also, check the trade volumes after the press release (at 1:45pm). People are paying attention.
Karma: SELECT `karma` FROM `users` WHERE `userid`=138474;
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.
Phase 1. We know SCO's business plan is flawed.
Phase 2. The Stockmarket knows that SCO's business plan is flawed. The share price is jumping about because people just like to speculate in the short term.
Phase 3. And Now baystar knows SCO's business plan is flawed (and finds a technicality to get their shares back)
Phase 4. ??? [The obligatory gnome-esc gap in the logic]
Phase 5. Profit? haha.. not this time. Go Directly into Administration. Do not pass go. Do not collect 200. Darl can look forward to having tux inserted, lovingly, into his anus by his boyfriend in prison :D
Simon.
Pray I don't alter it any further.
sulli
RTFJ.
That they would be suing BayStar for the sum of $50,000,000 for their decision to cease funding their lawsuits.
Gosh, making accusations, and not providing any specifics! That's horrible!!!!! I'm sure SCO is outraged.
Mike
From SCO's Press release
"BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement. SCO is attempting to obtain specific information from BayStar"
SCO now stands for "Shit! Cash Out!!"
Do we want every post to have a advertisement in the .sig? I personally think that moderators should mod down any post with SPAM at the end.
Visit my website!
Seriously, when the fuck did SCO hire the Iraqi Information Minister?
Did anyone notice that the stock was tanking BEFORE the press release? I guess they put out a negative release to justify the insider-trading fall.
Even if they were, they've been exposed and SCO is burning up rapidly and isn't likely to be able to stick it to Linux. There's little reason for anyone, including Microsoft, to keep money in SCO at this point.
May we never see th
They're still talking out of both sides of their mouth though. They still claim in their press release that they are, "the Owner of the UNIX Operating System."
Funny that they are the ones announcing BayStar putting the pinch on them. Guess they want to put the "positive spin" on it, just like everything else...
Your Servant, B. Baggins
SCO once again makes the list of losers in trading today! At this rate, maybe it'll be number one at something by days' end.
That screaming sound you hear is SCOX stock breaking the sound barrier as it plunges into the abyss. Thank god, it is about time.
I Am My Own Worst Enemy
If we don't go to court to test the legality of the GPL in the SCO case, it means it will happen later... perhaps against someone who doesn't have their head up their ass.
Going to trial against SCO is a sure thing for IBM, and therefore good for Linux. IBM and Redhat would tear SCO a new one, and the GPL would have it's day in court against the mental midgits from Provo.
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.
Linux users are required to celebrate with beer and an assortment of tasty food tonight. Now. Enjoy yourself tonight, and be happy. It's a good-looking new world for Tux and the rest of us out there -- things just got a lot sunnier. :-) Whee!
May we never see th
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
In SCO's headquarters...
Darl McBride: 'Damn!... What can we do?'
Employee: 'What if we sued them?'
Darl McBride: 'Good! GREAT! Let's sue them. But, er... what for?'
Employee: 'Hmmm...'
Darl McBride: 'Let's say, that, erm... BayStar runs FreeBSD! Let's say FreeBSD contains our IP.'
Employee: 'You have not lost your genius, Mister McBride! JOHN! Get a few lines from the BSD source code, will ya? Any lines will do.'
To help out, I've summarized sections 2(b)(v), 2(b)(viii) and 3(g) of the Exchange Agreement:
2(b)(v) : Presumption of Correctness
2(b)(viii) : Failure to Pass the "Laugh Test" Clause
3(g) : General Asshattery Clause
Maybe it was IBM instead of Microsoft behind the Baystar investment? :)
According to the Street.com article "BayStar Says SCO Breached Note":
(emphasis added) Thus, even if SCO eventually prevails over Baystar this may still sink SCO. SCO won't be able to obtain enough funding to battle IBM, et al.
Only Women Bleed (Sex, Sharia remix)
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."
Lackey: Sir, there is potential flaw in our plan, shall I have the shuttle made ready?
Darl: What in our moment of triumph?
-----
Ibm: Ok redhat, Youre all clear now blow this thing so we can all go home
(Scene of SCO imploding)
(Fat guys with beards in Star Wars t-shirts
dancing in the streets)
...It's the End of the SCO as we know it,
It's the End of the SCO as we know it,
And I feel fine!
I feel fine!
I think this is the first recorded instance of the ship leaving the sinking rats
... where SCO has been ordered to:
It's a tall order. I foresee a lot of coffee drinking and nail-biting this weekend, whether or not the smoking suitcase is full of evidence.
Q: What did the comedian say to the crowd?
A: If I knew, this joke would be funny.
We are altering the deal. Pray we do not alter it any further.
"'I pass the test,' she said. 'I will diminish, and go into the West, and remain Galadriel.'"
- JRR Tolkien.
Come on we know it's coming so just have the newstory all ready to go.
."
here a fill in the blank form for it to help you along
_____ writes today SCO sued ____ for ____ and $____ in damages. SCO contends that ____ failed to _____ resulting in SCO ______. When reached for comment _________ declined to respond at this time due to pending _________ but released a press release stating "At this time _________
"BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement. SCO is attempting to obtain specific information from BayStar and is evaluating its obligations and options with respect to the redemption notice. "
ROFLMFAO!!! Anyone notice that little bit of irony?
SCaldera's been running around saying that IBM, Novell, Redhat, Linus, your grandma, and everyone else has stolen their code and used it in Linux. MILLIONS of lines, they say.
When asked for specifics (even by the court) they refuse to grant any...
This is the first blow... Even if SCO holds off the redemtion request, they now must expend money in court to fight it. RBC might follow suit (and they should, or they are pissing away their $30 million).
Either party has an excellent chance, if they are right on their claim to have the court FREEZE those assets pending hearing.
This effectively kills SCaldera.
BayStar has made the decision to do this because they have no chance of ever getting their money back otherwise. And they are doing this knowing it destroys SCO.
This whole thing is over within 6 months now.
Corporatism != Free Market
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.
A less flippant summary:
2(b)(v) "You didn't outright lie to us about what you said about yourself in the original purchase agreement."
2(b)(viii) "You didn't omit any material fact that would make what you say about yourself misleading. You also haven't withheld from the public information you are required to disclose by law."
3(g) "You won't provide non-public information to us after the press release."
Not that I don't find yours more entertaining.
To be fair, there is also the lion school of legal practice...fierce, brave, tenacious. Unfortunately the rats, vultures and sharks tend to dominate.
Yeah, it's such a pity that the actions of 95% of lawyers make the other 5% look bad.
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?
but he has naked pictures of my wife too! He's a dead man!
Quidquid latine dictum sit, altum viditur
-
If the Closing Sales Price of the Common Stock is less than $10.50 (as adjusted to reflect any stock dividends, distributions, combinations, reclassifications and other similar transactions effected by the Corporation in respect to its Common Stock) for at least twenty (20) consecutive trading days, the Corporation shall have the right to redeem any shares of Series A-1 Preferred Stock then outstanding at price per share of Series A-1 Preferred Stock equal to the Face Amount plus all accrued and unpaid Dividends thereon through the closing date of such redemption.
OK, has that happened? Almost, but not quite. Look at the closing price data. From 9 March 2004 to 2 April 2004, there's a string of 19 days with a closing price below $10.50. Now we see why SCO frantically tried a stock buyback program, which pushed the price above the threshold for a mere three days.But there's a clause in the Baystar agreeement that prohibits SCO from doing most share repurchases.
This is going to get very ugly. Probably on Monday. When, remember, SCO finally has to disclose to IBM and the court what the claimed "infringing code" is. That deadline is tomorrow.
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.
A long long time ago
Darl can still remember
When Unix(tm) used to make him smile...
And he knew that in a few weeks
That he would sue those Linux(tm) geeks
And maybe prop the stock up for a while...
But IBM just wouldn't shiver
The AIX code they wouldn't deliver
Bad news on the newsrack
BayStar wants their cash back
I don't remember getting sad
When I heard how their stock crashed so bad
But I was laughing and oh so glad
The Day The SCO Group Died...
So we were singing
Bye, bye, Mr. Darl McBride...
The only reason we have the rights we have is that people just like us died to gain those rights. -- Cheerio Boy