Return to the Announcements page

LWN.net Weekly Edition for May 23, 2013

An "enum" for Python 3

An unexpected perf feature

LWN.net Weekly Edition for May 16, 2013

A look at the PyPy 2.0 release

Printable page

Weekly edition	Kernel	Security	Distributions	Contact Us	Search
Archives	Calendar	Subscribe	Write for LWN	LWN.net FAQ	Sponsors

Clouds in SCO/BayStar deal

[Posted July 23, 2004 by corbet]

The SCO Group has sent out a press release stating that it has registered the stock to be used in paying off BayStar, and that it considers the whole issue to be closed. However... "BayStar has notified SCO that it is BayStar's position that the repurchase transaction has not closed, pending resolution of claims by BayStar that SCO's recent public statements regarding SCOsource licensing opportunities are inconsistent with statements previously made by SCO to representatives of BayStar.... BayStar has also claimed that it will not consider the repurchase transaction closed until SCO provides BayStar with confidential information supporting the accuracy of SCO's recent public disclosures regarding its SCOsource business. SCO has declined to provide the SCOsource information requested by BayStar in order to protect the confidential and proprietary nature of the information and the names of the companies engaged in SCOsource licensing discussions and to avoid fostering speculation regarding its SCOsource business." Looks like SCO may have another lawsuit in the works.

(Log in to post comments)

Posted Jul 23, 2004 18:39 UTC (Fri) by MathFox (guest, #6104) [Link]

Baystar has put out a Press release too:

Baystar Capital Announces Repurchase Transaction With the SCO Group, Inc. Has Not Closed
Friday July 23, 1:56 pm ET
SAN FRANCISCO, July 23 /PRNewswire-FirstCall/ -- BayStar Capital today announced that, despite a prior announcement by The SCO Group, Inc. (Nasdaq: SCOX - News) to the contrary, the transactions contemplated by the Stock Repurchase Agreement by and between BayStar and SCO, dated as of May 31, 2004, have not closed due to an unresolved dispute between the parties. BayStar intends to file an action requesting a declaratory judgment with respect to its rights under the Stock Repurchase Agreement. Until a final determination is made by the court, BayStar maintains its position as a Series A-1 Preferred stockholder of SCO.

Time to reserve a seat on the front row

Clouds in SCO/BayStar deal

Posted Jul 23, 2004 19:27 UTC (Fri) by jre (guest, #2807) [Link]

It was Baystar / RBC's $50 million that financed the SCO legal machine in the first place, and which will now be used in a fight with Baystar. Ah, the poetic justice of it all is too much to take!

Clouds in SCO/BayStar deal

Posted Jul 24, 2004 3:47 UTC (Sat) by Eudyptes (guest, #15589) [Link]

SCO burns all bridges. Yes, poetic justice indeed! BayStars own money is
going to be used against them. SCOs execs are nothing more than scam
artist. Darl couldn't keep his job at the last position and he sued his
former employer.

Torts are supposed to be there to settle unresolved grievances or wronts,
but Darl sees torts as merely another tool for capital gains? BayStar
ignored all the redflags (no pun intended), I mean did those guys at
BayStar investigate Darls background? If they did then they most likely
ignored his history. As an Exec his history is dismal. Furthermore, at
the time SCO bought the former Caldera the stock price was around
$120/share. Today it was around $4.20/share and at the time SCO started
all this "IBM stole our stuff and put in Linux to undercut our product"
crap it was on the verge of being delisted. Seriously, the present SCO
team drove the former Caldera's company straight into the ground.

What this reeks of, moreover screams for, is a concerted SEC
investigation. Why does BayStar want "specifics" about SCO licenses and
those that are partnered/signed up? Because they suspect what most of
already know... That SCO is out and out lying. They're are probable no
real new licenses, or at least no where near what SCO is reporting. Their
common stock investors are soon to see all their money flush down the
toilet and apparently so is BayStay. Greed and Fear. Those are the two
fundamental laws on Wall Street. BayStar is a perfect example of this.
The PIPE deal was the greed and the pulling of the funding is the fear.

Like rats from a ship BayStar is swimming as fast as they can. The funny
thing is, like a real ship sinking, if one is too close to the ship when
it finally goes under you get suck down with it. Seems this is what's
happening to BayStar. And if the SEC does indeed investigate SCO one can
only wonder what they'll find. The problem is waking that sleeping dragon
known as the SEC. I have yet to understand why SCO has been able to do
what it does with relative impunity. I guess as long as they make their
investors money then no harm no foul? The problem is they ain't making
money, they're back to what the do best - losing money, alot of it.

This is getting interesting!

Clouds in SCO/BayStar deal

Posted Jul 29, 2004 15:28 UTC (Thu) by TxtEdMacs (guest, #5983) [Link]

Do not be overly pleased by the apparent course of events. Bay Star was well aware of the approach, i.e. sue for cash whether deserved or not.

One should remember the breakup and buy back arrangement was due to SCO not following Bay Star's plan of dropping all other business other than the various suits. In other words get out of the software business, concentrate on getting cash by legal trickery.

The best hope is that SCO fends them off with their remaining capital and SCO looses a series of cases quickly. Otherwise, the situation may be worse with a SCO buyout and a litigant with deeper pockets to continue this farce longer than could be expected.