SCO gets $50 million [LWN.net]

The SCO Group has announced the receipt of $50 million in financing from BayStar Capital. "The increase in cash will significantly enhance the overall financial strength of SCO while providing substantial additional funding for business objectives including future UNIX and SCOx Web Services software development, new strategic partnerships, and protection of the Company's UNIX intellectual property and related programs." Those of you who have been missing the always-amusing SCO teleconferences will be glad to know that one is happening today (Friday) at 12:00 US/Eastern time.

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SCO gets $50 million

Posted Oct 17, 2003 14:42 UTC (Fri) by Cato (guest, #7643) [Link] (2 responses)

Good to see a much less biased report on SCO backing away from invoicing Linux users - it's clear that SCO is climbing down due to the threat of being prosecuted for mail fraud if it loses the IBM case. Entertaining to see the amazing spin being put on this, and yet more good money chasing bad, though...

SCO gets $50 million

Posted Oct 17, 2003 15:12 UTC (Fri) by jre (guest, #2807) [Link] (1 responses)

Yes -- entertaining and disturbing at the same time.

Let's not forget that the same gang of criminals is still running SCO. It does not seem likely that they have given up on making money through extortion, even if this particular avenue has been closed to them for the moment. They know that, given their well-earned reputation, their chances of making money on Linux legitimately are now zip. And they now have, as Groklaw puts it, "$50 Million to Do More Bad Things With."

Jon -- we know that SCO controls these teleconferences with an iron hand, excluding any non-sympathetic press. But is there any chance at all that someone can slip in with a pointed question about why SCO is giving up the invoice threat, and whether it may be revived?

SCO gets $50 million

Posted Oct 17, 2003 15:43 UTC (Fri) by Cato (guest, #7643) [Link]

My initial comment should have been on the other SCO story...

SCO gets $50 million

Posted Oct 17, 2003 17:30 UTC (Fri) by dsime (guest, #5764) [Link] (1 responses)

Hmmm
"BayStar Capital" ooks like a cut-out.
Someone named Bill goes to them, or maybe creates a shell and traverses a bank or two and another shell, and hands them $50Million US and says buy SCOX.

BayStar Capital says OK.

In a company whose only product is their own stock?
Oh I forgot MS has picked up another $8Mill in "Licenses" so I guess they have a going license business with a whopping 2 customers.

Yo SEC, Can I get an investigation here?

SCO gets $50 million

Posted Oct 17, 2003 19:56 UTC (Fri) by henryst (guest, #16094) [Link]

That's what ticks me off. Those SCO guys seem more like gamblers in a
casino than "business men." They never talk about products...cuz they
got none....it's always about stocks. Of course in todays age that's how
things are. That is the reason I'd never let my own company go
public....then you are at the hands of investors and not engineers &
developers. With a private company, the profits can go back to the
people who actually do the work (just take a look at the Id employees
paychecks).

What is baystar thinking?

Posted Oct 17, 2003 18:46 UTC (Fri) by walterbyrd (guest, #11620) [Link]

A $50 million loan to a company that is going out of business? A company threatend with at least three serious lawsuits? And that company is going to pay you back with shares at a fixed value of $17? Hey baystar, scox was selling below $17 just two days ago. Historically $17 is extremely high for scox, scox was under $1 a share a year ago.

Even more bizarre, scox is the company that is desperate. If I am going to lend money to a company that is going out of business, and desperate for cash; I don't think I'm going to loan that money with terms that are over-whelmingly favorable to the borrower - and unfavorable to me.