SCO Proposes Sale of Assets To Continue Litigation

gzipped_tar sends in this excerpt from the Salt Lake Tribune: "The embattled SCO Group Inc. is proposing to auction off its core products and use proceeds to continue its controversial lawsuits over the alleged violations of its copyrights in Linux open-source software. The Lindon company has filed a new reorganization plan with the federal court in Delaware where it sought bankruptcy protection from creditors after an adverse ruling in the Linux litigation. If approved by a bankruptcy judge, the plan could mean SCO's server software and mobile products lines are owned by other parties while SCO itself remained largely to pursue the lawsuits under the leadership of CEO Darl McBride. 'One goal of this approach is to separate the legal defence of its intellectual property from its core product business,' McBride said in a letter to customers, partners and shareholders. Jeff Hunsaker, president and COO of The SCO Group, said the litigation had been distracting to the company's efforts to market its products. 'We believe there's value in these assets and in order for the business to move forward it's imperative we separate it from our legal claims and we allow our products business to move forward,' he said Friday."

Comments

Wow. Just wow.

[DurendalMac]

So Darl is going to basically sell off most of what the company has to continue a lawsuit he has no hope of winning? What the HELL is wrong with this guy? Worst. CEO. EVAR.

Correction and prediction

[OpenSourced]

Where is reads :

Jeff Hunsaker, president and COO of The SCO Group, said the litigation had been distracting to the company's efforts to market its products.

it should read :

Jeff Hunsaker, president and COO of The SCO Group, said the efforts to market its products had been distracting to the company's main litigation activity

There, that's it.

Now a prediction. I predict that they are going to find a very generous buyer, that will pay much, much more than the market value of the actives, allowing the new, rather hollowed-out SCO to keep on litigating for years. Call it a hunch.

if no sale, 10% cut in 280K salary

[RichMan]

Ah but if the sale fails to raise sufficient cash the company directors will take a 10% cut in their salaries.

Is $280k a year a good salary for a CEO of a company that is in bankruptcy and has so far burned through $0.25B of investor capital.

Oh and there are only 66 employees. I would bet your nearest grocery store is larger than that.

Beyond Horrible.

[misterjava66]

Imagine, a company selling off its primary assets to fund a shakedown lawsuit. If this is not proof that america is too litigious, what could be proof. This demonstrates just how sick this sue-for-profit legal system is. If sue-for-profit did not exist, SCO would be off trying make good products now and linux users would have never been intimidated. Sad sad day for our culture to see this continue yet again.

Giving up pretense

[sjames]

SO, SCO wishes to give up any pretense of doing anything productive at all now or ever again so they can divy up the only remaining value amongst the lawyers and executives and have nothing left to pay their creditors. It sounds like they've also given up all but the slimmest pretense of even attempting to provide ROI for their stockholders.

Re:McUnix

[rickb928]

Another possiblity is for McDonald's to buy SCO and then lhave the POS software ported to another platform. There are many, and Solaris might be the winner there.

Then SCO can truly die.

ps- This would be very difficult for the bankruptcy judge to turn down. Might be cheaper to McD's than licenses. Would still give ignat money to pursue his stupid suit.