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Investment Firm Bids to Buy SCOs UNIX Operations
WebCowboy writes "It appears that there are still enough people out there deluded enough to see value in SCOs UNIX operations. York Capital Management has put in a $36 million bid for SCOs UNIX operations. The offer includes coverage of up to $10 million for payment of legal fees and York Capital would assume ownership of the disputed UNIX IP as well as what is left of the lawsuits.
Interestingly, SCO has offered this up for competitive bid (who would want to though?). Upon completion of the transaction, should bankruptcy court approve, SCOX would become solely a mobile applications provider (which is the only part of SCOs offerings that have undergone any meaningful development for quite some time)."
Theres a sucker born every minute. Actually with 6 billion people in the world these days its probably 10 suckers every minute.
Libertarian Leaning Political Discussion Forum.
York Capital Management is a hedge fund management outfit. They are not going to be breathe any life into SCO. They are going to tear it apart and sell off what they can and try to make a profit over and beyond the 30+ million they are intending to invest.
If they didn't see any upside here, they wouldn't have made the offer. You can bet SCO's got something of value that York will be able to sell off at a tidy profit.
"JGD Management Corporation has its principal executive offices at 1118 East Green Street Pasadena, California 91106 (http://www.secinfo.com/d12TC3.v51a.htm)
If you google the address the first match is a reference to a page on Edgar which provides the Form 4 (any of you US business types know what that is?) for a comany known as Arrowhead Research Corp which has one R Bruce Stewart as its CEO and Chairman of the Board.
(http://edgar.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?Sessi onID=T-hII2bI2EHwHrP&ID=3669175)
R Bruce Stewart founded Acacia Research Corporation in March 1991. (http://www.forbes.com/finance/mktguideapps/personinfo/FromPersonIdPersonTearshe et.jhtml?passedPersonId=927443).
Has anyone heard of Acacia Research before?
Hmmmm.
It has to be a coincidence."
They're going to throw Darl out of a plane, strapped to a large chunk of heavy metal?
Well, that's got to be worth $30 million.
Can we also make him wear a T-shirt saying something like "I tried to fix my obsolete business model using litigation", then drop him near the RIAA headquarters?
>north
You're an immobile computer, remember?
Actually, at least based on the limited info I have seen, from a purely financial point of view Novell should be happy. SCO does not have the money that it owes Novell, but YCM does. So, actually, I wouldn't be surprised to find out later that Novell helped to set it all up.
Please note that the deal will cost YCM more than $36m, so their valuation of the thing they'd be acquiring must be considerably higher as well.
If they behave sensibly, they will stop the lawsuits and pay Novell (that is: on top of the $36m). Next they will need to spend some money to clean up the mess and carve up the pieces. Only after that has been resolved, can they think of selling the viable bits and making a profit.
If they do not behave sensibly, they will continue the lawsuits and loose more money in the process (e.g. on legal fees). Even if they think they still have a chance of winning something along the way, they sure know very well that odds are against them and they will have taken that into account during their risk calculations while valueing SCO.
Companies such as YCM do not step into a very risky deal like this one without a clear view on a sizeable return on investment that would compensate for all the risk. I have a feeling that a few years from now the YCM-SCO example might become standard case study in business schools.
Linux user since early January 1992.