SCO Goes Private With $100 Million Backing

AmIAnAi writes "Just when you thought it was all over, the SCO story takes a new twist. SCO has received $100 million financing from Stephen Norris Capital Partners to get them out of Chapter 11 and go private 'The move gives Stephen Norris, whose namesake founder was a co-founder of private equity giant The Carlyle Group, a controlling interest in SCO, which now has a platform to continue its court battle with Novell Inc. over royalties from the Unix server operating system, SCO's main business ... According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.'"

Comments

Calm down, everyone

[Bruce Perens]

It's abundantly clear that SCO's court case isn't going anywhere and this is a really poor investment. I agree that we should look for who is back-stoping the investment (as last time), because nobody in their right mind would make this investment expecting to make a profit. I don't think it's even worthwhile for FUD value any longer. We've essentially won this case already, there isn't really any going back.

Bruce

Wrong. That's the Bushes behind that move.

[leftie]

"The Big Guys Work For The Carlyle Group
What exactly does it do?

To find out, we peeked down the rabbit hole.

FORTUNE Monday, March 18, 2002

The Carlyle Group, a Washington, D.C., buyout firm, is one of the nation's largest defense contractors. It has billions of dollars at its disposal and employs a few important people. Maybe you've heard of them: former Secretary of State Jim Baker, former Secretary of Defense Frank Carlucci, and former White House budget director Dick Darman. Wait, we're just getting warmed up. William Kennard, who recently headed the FCC, and Arthur Levitt, who just left the SEC, also work for Carlyle. As do former British Prime Minister John Major and former Philippines President Fidel Ramos. Let's see, are we forgetting anyone? Oh, right, former President George Herbert Walker Bush is on the payroll too..."

http://www.carlylegroup.net/thebigguys.htm

So now the Bushes are going to send Jim Baker to court to steal Linux.

Groklaw Coverage

[Anonymous Coward]

http://www.groklaw.net/article.php?story=20080214125705140

Can't believe they forgot the Groklaw link!

Re:Look for more Microsoft money behind

[Otter]

My recollection is that the bin Laden family (not Osama) had a trivial stake in Carlyle, and that both President Bushes have served on its board. The GP's "the Carlyle Group is mostly Bush and bin Laden money" is wildly exaggerated, to put it mildly, although I'd be curious to hear more of his theories about "who might actually be doing what, and what's at stake".

Hey SCO is in Bankruptcy Court

[kilgortrout]

And you can't do a deal like this without authorization from the Bankruptcy Court. This will probably all be part of a Chapter 11 plan of reorganization the details of which have yet to be filed by SCO. The devil is in the details with these things and you can be sure SCO will be out to screw all general unsecured creditors; that's pretty much par for the course in all Chapter 11 plans. Also, expect a lot of Bankruptcy Court litigation over the status of Novell's claim, i.e. SCO will attempt to lump them in with the other general unsecured creditors and Novell will assert its trust theory. At any rate the post petition funding here will not be available to SCO's pre-petition creditors, including Novell. All those claims are dealt with in the CH 11 Plan and are discharged by the approval of the Plan.