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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.'"
... the Stephen Norris group. When do the judges get sick of barratry?
Dog is my co-pilot.
What kind of genius investment group thinks sueing IBM is a winning proposition?
My understanding was that the company imploded because it was ruled that they did not own the Unix copyright, upon which the majority of its legal claims were based. What legal claims could they possibly have left?
Also, buying a company for the sake of being able to earn legal awards should be illegal, strictly as a matter of financial sanitation. A good solution to this would be a statute that makes a buyer liable for claims up to the amount he paid for the company, but make both him and the company unable to claim any rewards in suits pending on the company's behalf.
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Looks like one of their senior people is in with George Soros. So they have potentially some very serious money behind them now.
Dog is my co-pilot.
I think, in a backwards way, it's a good thing. There's some concern in some quarters that SCO evaporating before the questions it raised would leave those questions unanswered, and that someone might try this stunt again. Now everything, including what SCO owes Novell, will get a full hearing.
The world's burning. Moped Jesus spotted on I50. Details at 11.
Stupidity cannot adequately explain this move, which leaves...
Simple Unexpected Concrete Credible Emotional Stories
Hire your brother (Kevin McBride) as a lawer and pay him a pile of legal fees (thereby getting the money out of the sinking ship and back onto dry land, but out of reach of the investors).
Engineering is the art of compromise.
SCO is proposing to go private.
Right now they can't buy paperclips without Judge Gross's permission (ok, I'm exaggerating, but only a little).
The US Trustee, Novell and IBM are all going to over the plan with a fine-tooth comb and the judge isn't going to approve it just on SCO's say-so. This could be like the York deal that SCO tried to push though last year, all smoke and mirrors.
So don't go getting your shorts in a bunch just yet.
A quick check of the Stephen Norris Capital Partners Website elucidates their business model:
White men, models of conservative grooming and sartorial conventionality, sit around smoking crack and wearing propeller hats, while trying to concoct surrealistic investment strategies that will attract additional investors for their partnership. Or, perhaps they are holding patents for a way to convert millions in wasted litigation and the accompanying legal briefs into Green Energy.
http://www.snpartners.com/
Gosh, is anybody else ready for this to just stop? Did somebody play a mean trick and make the dead horse twitch so somebody would want to beat it some more? SCO=Silly Corporate Overindulgence? Shortage of Clues Obvious? Serious Conspiracy Overload?
cd
None of SCO's claims in any of their lawsuits involve patents.
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
This is not capitalism at work, it's predatory behavior and something anti-trust lawyers should sink their teeth into. There is no reasonable expectation of return on SCO's "business" because SCO is full of shit and every decision has been against them. This is just another $100 million that M$ does not mind pissing away. The "investment" harms the reputation of all involved.
Nobody running a successful LBO firm is stupid enough to make this ridiculous lawsuit the central part of an execution plan.
The Statements in the release are quite lawyerly indeed. The funding is in place, IN PART, to "see SCO's legal claims through to their full conclusion". PJ interprets this to mean "continue to attack Linux", and indeed the deal suggests that is something these investors would like to see returns from: the vast majority of this $100M is not hard cash to be handed over in one lump sum loan, it is a "line of credit" to fund continued operations and part of financing this line of credit would be, IIRC, 17% of any monetary judgments in SCO's favour.
However, I cannot believe that the smart people behind SNCP sincerely think they have a good chance of actually WINNING the lawsuit. I think it's more of a "lottery ticket"--lawyers make sure their butts are covered, and that they'll be able to screw ove...errr I mean "receive compensation" under all circumstances. "Continue to pursue" litigation "to their full conclusion" could very well be code words for "finally put it to rest". They apparently have a plan that includes the legal stuff but haven't released details (and taking SCO private would mean they don't ever have to do so). That plan very likely incorporates (or entirely consists of) a contingency plan. It looks pretty bleak to reverse the decision on copyright ownership, but they can appeal a judgment on royalties owed to Novell and get out of paying tens of millions. The same goes for any counter-suits from the likes of IBM or Red Hat. SNCP may think they have the ability to get SCO out of hot water without paying out as much (or any) money.
In short, their legal strategy might (wisely) be a defensive strategy to cut their losses and move on. To paraphrase that cute song "if I had a (hundred) million dollars", well, I'd "buy me a SCO" too actually, and that would almost be my legal plan, though I'd be more apt to not put too much effort in "cut the losses" and settle out of court. If I was some LBO billionaire dude I'd buy SCO, and when judgment came I'd say "here's your money Novell", and subsequently settle all other disputes quickly. Then I'd promptly GPL UNIXWare and OpenServer and use what's left of the technical people to refocus SCO as a "solutions provider" to target the thousands of SCO users around the world with UNIXWare/OpenServer-to-Linux migration plans. Anything of redeeming value in the newly-GPLed legacy OS products would then be incorporated into a "LinuxWare" distribution tailored to be as close as possible to a drop-in replacement for existing SCO customers.
The background of SNCP and their "middle eastern partners" really make me uncomfortable though. Those stated partners include the Saudi prince who is Bill Gates' investment partner in the Four Seasons hotel chain. These are legally-savvy business tycoons. I cannot see them taking the "Mark Shuttleworth act of benevolency" approach that I'd take. They are no doubt acting with convincing insider knowledge. I think that there might be a few motivators for this investment:
* They might have a convincing legal argument to overturn some of the judgements against them--for example they might be able to retain copyright to at least portions of UNIX, and that would at least allow the IBM lawsuit to move forward and keep the FUD coming for Microsoft.
* They are trying to stem customer migrations to Linux. I have no doubt that even if Microsoft isn't tied to this deal that BillG *is* in some capacity, and he obviously has the betterment of Microsoft in his self interest. The business plan outside the legal battle may be in fact to steer SCO customers towards Microsoft solutions, and perhaps to eventually have MSFT absorb SCO entirely. If you combine that with the first point, that would mean MSFT could end up with some UNIX copyright ownership--a great piece of IP to leverage if you wished to embrace, extend and extinguish *real* UNIX operating systems of all kinds (like
Cockroaches don't fare much better than humans to radiation.
From wikipedia:
It is popularly suggested that cockroaches will "inherit the earth" if humanity destroys itself in a nuclear war. Cockroaches do indeed have a much higher radiation resistance than vertebrates, with the lethal dose perhaps 6 to 15 times that for humans. However, they are not exceptionally radiation-resistant compared to other insects, such as the fruit fly. The MythBusters of Discovery Channel had tested this popular belief in an episode aired on January 30, 2008, and had confirmed that fruit flies do indeed have a higher resistance to radiation than cockroaches.
The cockroach's ability to withstand radiation better than human beings can be explained in terms of the cell cycle. Cells are more vulnerable to effects of radiation when they are dividing. A cockroach's cells divide only once when in its molting cycle, which at most happens weekly in a juvenile roach. The cells of the cockroach take roughly 48 hours to complete a molting cycle, which would give time enough for radiation to affect it but not all cockroaches would be molting at the same time. This would mean some would be unaffected by the initial radiation and thus survive, at least until the fallout arrived.
They started talking about how IBM and Novel stole a whole bunch of their Intellectual Property and put it into Linux, and how Linux is nothing but a bunch a thieves.
Unbridled arrogance combined with a complete disconnection from reality? There is only one explanation -- SCO has been taken over by Scientology.
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