EtherPad source code is free, now what?
Posted Jan 3, 2010 18:44 UTC (Sun) by giraffedata
In reply to: EtherPad source code is free, now what?
Parent article: EtherPad source code is free, now what?
Isn't the company in question being bought, not bankrupt? That would mean that the buyer, ie google takes over contracts and responsibilities and thus can be sued.
The buyer doesn't normally do that.
A "company" isn't really something you can buy. Buying a company is an informal description of various kinds of transactions, but the most common one is that the buyer buys the assets of the company. E.g. Google buys the copyrights, patents, trademarks, real estate, machinery, customer lists, etc. You don't take over someone's liabilities just because you buy something (or lots of things) from him.
The seller is now a corporation whose only asset is cash. It dissolves itself and distributes that asset to its shareholders.
Another way is to buy all the stock of the corporation. If the buyer does that, the corporation still has all its liabilities, and by extension the buyer does. But these liabilities are why people don't like to buy businesses that way. And they're also a principle reason that the business was set up as a corporation in the first place.
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