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SCO Springs a Prospective Buyer

clemenstimpler sends a link to Groklaw, which has been following the proceedings dealing with the conversion of SCO's bankruptcy to Chapter 7 (i.e., liquidating the company). SCO has announced a prospective buyer. "...SCO has suggested it has a buyer. That doesn't mean it will avoid Chapter 7 of course, nor does it mean that the bankruptcy court will OK the suggested sale. But it likely does mean more delay, which is what this is likely all about. SCO very much wants to wait until the appeals court rules in SCO v. Novell. ... Hearing set for July 16 with backup for July 27. SCO has already moved to make it July 27. combo hearing on convert and sale. Frankly, it would not totally amaze me if the three entities that filed motions to convert were to appeal this. If not, SCO got its desired delay."

26 of 89 comments (clear)

  1. For our Benefit by nametaken · · Score: 5, Funny

    They're dragging it out so we can savor it.

    1. Re:For our Benefit by Muad'Dave · · Score: 2, Interesting

      As Willy Wonka said, "The suspense is killing me. I hope it lasts."

      --
      Tiller's Rule: Never use a word in written form that you've only heard and never read. You will end up looking foolish.
  2. Paging Buffy Summers... by petrus4 · · Score: 2, Interesting

    This article's title gave me the mental image of a decomposing zombie clawing its' way up out of the ground.

    Hopefully as the article suggests, the sale will be forestalled, and some judge will finally put a stake in this monster once and for all. ;)

    1. Re:Paging Buffy Summers... by SonOfFlubber · · Score: 4, Funny

      "decomposing zombie clawing its' way up out of the ground" ....

      .... Darl of the Dead?

    2. Re:Paging Buffy Summers... by Dhalka226 · · Score: 4, Informative

      Hopefully as the article suggests, the sale will be forestalled, and some judge will finally put a stake in this monster once and for all.

      I doubt it. A bankruptcy judge's job is essentially to ensure that SCO's creditors get the maximum amount of money back under the law. From that perspective, liquidation tends to be a fairly lousy solution, particularly for companies deeply in debt. A buyer is, of course, the best solution: Somebody willing to assume that debt and, hopefully, turn the company around to making some money again. Then it can start to pay back its creditors and if it falls apart again, well, you're just right back at the liquidation stage -- little lost but time.

      So unless the judge can determine this is nothing but a bullshit stalling tactic on the part of SCO--and I doubt any judge would do so without at least a hearing or two on the matter--they're almost certain to let it pass.

    3. Re:Paging Buffy Summers... by hedwards · · Score: 2, Funny

      We should go all in and just bring in Bruce Campbell, he's only a hundred, I'm sure he can still fight off a horde of IP attorneys and zombies.

    4. Re:Paging Buffy Summers... by russotto · · Score: 3, Informative

      I doubt it. A bankruptcy judge's job is essentially to ensure that SCO's creditors get the maximum amount of money back under the law. From that perspective, liquidation tends to be a fairly lousy solution, particularly for companies deeply in debt.

      Right now, realistically, the best the creditors can hope for is liquidation and for someone to buy up "substantially all the assets" of the company. That probably amounts to zero, but at least it allows them to finally write off the bad debt and be finished with the litigation. Zero all they can expect in any case, the only question is whether it is zero now or zero later.

  3. I get it by Starlon · · Score: 5, Funny

    They're getting a bailout! The government will now own Linux.

    --
    Health Freedom is almost as popular as Freedom itself.
  4. How many hops to M$ ? by Alain+Williams · · Score: 2, Insightful

    How far do we need to follow the money to find Microsoft ?

  5. No appeal of the delay by Mostly+a+lurker · · Score: 4, Interesting

    I very much hope the Office of the US Trustee, IBM, Novell and others do not appeal the delay. Of course, they have excellent grounds for doing so, but the result would likely just be a longer delay. SCO has successfully gamed the system, and will probably gain a six week delay in the process. If this is appealed, it will probably take longer than six weeks just to argue and get a decision. Meanwhile, SCO will argue that the purchase agreement cannot go forward with the Chapter 7 conversion hanging over their head (BS, of course, but prove it).

    1. Re:No appeal of the delay by Lorien_the_first_one · · Score: 2, Insightful

      The ideal arrangement is to have the purchase go through before the appeal. Then have the appeal denied. That way the estate is refreshed with big bucks just in time for the hoovers to move in.

      --
      The diversity and expression of human opinion is essential to human survival.
  6. Hiding the money by jrumney · · Score: 4, Insightful
    From another article (I can't access groklaw right now, so I don't know if the same is stated on groklaw):

    The remaining SCO company will also continue to enforce its appeal of U.S. District Judge Dale Kimball's ruling in August 2007 that found Novell, not SCO, rightfully owns the copyrights on the Unix operating system, he said.

    So this is an attempt to get the remaining cash and Unix assets out of reach of Novell, and leave the shell of SCO (plus some mobile products that most likely have no value) to continue the lawsuit, with no money left over for Novell and IBM when they eventually run out of appeals.

    1. Re:Hiding the money by jrumney · · Score: 2, Funny

      Yes, divide that by the number of sales per annum, and you'll quickly see that SCO has infinite value.

    2. Re:Hiding the money by Lorien_the_first_one · · Score: 2, Interesting

      Perhaps, but with the current administration, and the new legislation winding it's way through, it could conceivably get easier to pierce the corporate veil. This lawsuit represents the height of corporate avarice. What makes it all the more interesting is that the only newspaper willing to continue to run stories on it seems to be the Salt Lake Tribune. Yet the lawsuit will have worldwide influence once the appeals have run their course.

      I'm really looking forward to the trial of IBM's counterclaims, and the damages decided from them. At that point, we're very likely to see where the money for the suit came from.

      --
      The diversity and expression of human opinion is essential to human survival.
  7. Wrong - just advertising on someone else's work by dbIII · · Score: 2, Informative

    Bullshit.

    You have been conned by stupid MIT staffroom politics which has escaped onto the net. Linux is not a GNU project, the GNU operating system is called HURD. I think the whole gnu/linux thing and the LiGnuX thing before it was just a response to people asking RMS what he had done lately. He has done a lot of worthwhile things but linux was put together by others. The gnu tools are incredibly useful but make up only a small portion of most linux distributions and are not there at all in some of the embedded distributions (which use a different C library and use busybox).
    There is a linux distibution called is "Debian gnu/linux", but all the packaging has been done by Debian without involvement by gnu.
    It also seems you have confused GNU with the GPL and seem to think the GPL restricts commercial activity - keep in mind that not even Halliburton are afraid of it since all it really means is telling people where you got your free code from. It isn't 1995 anymore, and even then anyone that took the time to actually read the thing wouldn't have been that worried about it.

  8. in this day and age? by MoFoQ · · Score: 2, Informative

    in this day and age...after the credit implosion and GM's bankruptcy..after Madoff....there's someone still stupid^H^H^H^H^H^Hbold enough to buy SCO?
    Man....can someone get me his number? I've got a few dozen bridges and landmarks to sell him, not to mention a few automobiles.

    1. Re:in this day and age? by Chrisq · · Score: 5, Insightful

      in this day and age...after the credit implosion and GM's bankruptcy..after Madoff....there's someone still stupid^H^H^H^H^H^Hbold enough to buy SCO? Man....can someone get me his number? I've got a few dozen bridges and landmarks to sell him, not to mention a few automobiles.

      Yes sure, he's the guy that's managing your retirement account.

    2. Re:in this day and age? by sumdumass · · Score: 2, Interesting

      I would buy SCO if I had the money. Not because I think it is a gold mine or anything but because of all the people claiming rights to Unix, SCO is the only company trying to claim Linux is a derivative and do something about it.

      If a few geeks, maybe backed by Novel, IMB, or some other companies using linux in their products purchased SCO at the liquidated price, they could operate their own distro, are large enough to demand Unix drivers and could open enough specs to allow OSS drivers, and put an end to this saga once and for all. We could call this pack, GLOSCO or Geeks for Linux and getting Over SCO.

      I'm seriously wondering why we have seen talk of something like that. SCO or SCOGQ is trading for around 15 cents a share now, if every geek in the world contributed $100, that would be 666 shares. With 15.2 million shares outstanding, it shouldn't take much more than 22 or 23 thousand people to buy it outright at $100 plops. Get IBM, Hitachi, Motorola, Novels, perhaps a few of the distros to donate and that number drops fast. All the IP gained could be placed into a trust account and SCO can operate as a commercial development platform with OSS driver access and open improvements for the rest of us.

  9. The REAL reason by Linker3000 · · Score: 2, Funny

    I understand they just need a bit more time to conclude their purchase of the Duke Nukem Forever codebase and issue a call for investors to fund completion of this vital work.

    Oh, there won't be a game coming out of all this - SCO will have a pile of algorithms and methods specific to the gaming world stretching back as far as the first annoucement of DNF and so they can then start to examine games produced since that date from all the big players to see if they have 'pinched' anything.

    3. Profit

    --
    AT&ROFLMAO
    1. Re:The REAL reason by forgotten_my_nick · · Score: 2, Funny

      "I understand they just need a bit more time to conclude their purchase of the Duke Nukem Forever codebase and issue a call for investors to fund completion of this vital work."

      Based on previous experience I suspect they would be more likely to buy that codebase, then claim others had stolen that code in their own FPS games and offer to allow end users to license to use a product for a small fee. Then sue EA, pump shares, dump shares, lose and then file for bankruptcy.

  10. That's not how an appeal works by gavron · · Score: 3, Insightful
    The Court can rule that the case goes back to the Utah Court or not. It will not rule on the merits of the case, so it will not ever in any way, shape, or form rule that SCO has the rights to Unix or any other pipe dream.

    There is no indication that the decision of the appeals court will occur in the next six weeks. SCO is stalling because that is the tactic they've adopted from the very first "suitcase of proof" and "millions of lines of code" and "MIT deep-divers."

    FUD works when it lasts for a very long time, not when it's immediately dispelled.

    E

  11. One by Yvanhoe · · Score: 4, Informative

    One hop :
    http://www.infoworld.com/t/platforms/sco-strikes-gold-verizon-just-strikes-728
    Microsoft bought $6 million of "licenses" to SCO in 2003.

    --
    The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
  12. Potential buyer by Joe+U · · Score: 5, Funny

    I almost bought SCO. But I spent the $10 at McDonalds instead.

  13. "Potential" is the key word here by UnknowingFool · · Score: 3, Informative

    I don't really think there is any serious buyer. Previously SCO tried to launch an emergency sale to York management only to have the bankruptcy court and all its creditors object to the deal. What SCO never made clear (or tried to hide) in that deal was who would get the liabilities from the Novell judgment against them. If the sale had gone through, Novell would have had to spend years figuring out who owed them the money. This is just another ploy to stall for time.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  14. Erm....guys? by Sj0 · · Score: 2, Insightful

    Hang on.

    So they lied about linux containing unix code.
    Then they lied about owning full unix rights.
    Then they lied constantly about their ability to handle it in court.
    Then they lied to the court by using stalling tactics pretending they needed information.

    Maybe they're lying? You know, flat-out, bald faced shameless lying? They're already so badly in trouble in the courts, what's one more lie if it helps stave off death a bit longer?

    --
    It's been a long time.
  15. Microsoft, duh... by MsGeek · · Score: 2, Interesting

    Anyway, the suitor has been announced: Gulf Capital Partners. Which raises the question: is there a Microsoft connection to these guys? The only company with any discernible reason to keep Sweet Zombie SCO alive is Microsoft.

    I have answered my question: yes there is a definite MS connection. "The issue is not if you're paranoid, it's if you are paranoid enough." -- Max, "Strange Days"

    --
    Knowledge is power. Knowledge shared is power multiplied.