SCO Gets A Lifeline; Plans To Continue Quixotic Legal Quest

from the throwing-good-money-after-bad dept

Thought SCO was dead? Yup, you're not the only one. But, with big private equity firms willing to bet huge amounts on questionable intellectual property claims, it really shouldn't be a surprise that one came to SCO's rescue. Stephen Norris Capital Partners has dumped $100 million into SCO, taking the company private. Not surprisingly, a big reason for the lifeline is to continue the company's legal battles. These are the same legal battles that propped up the company's stock and allowed some insiders to cash out -- but which have yet to result in a single significant court win, while racking up numerous losses. SCO has insisted for years that it had various "smoking guns," but went into bankruptcy without revealing a single one. Why is it that suddenly these investors believe the company can actually win a legal battle?


Reader Comments (rss)

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  1.  
    identicon
    Scote, Feb 15th, 2008 @ 12:52am

    They haven't dumped any money into SCO yet...and they are only proposing a 5 million dollar investment with a line of credit to be doled out "up to" an additional $95 million. The Bankruptcy court has to approve any such investment, which could actually screw the current creditors out of cash owed to them because the "loans" to SCO would put the investor at the head of the line in front of all other creditors. SCO is like a movie villain that refuses to die.

     

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  2.  
    identicon
    Lawrence D'Oliveiro, Feb 15th, 2008 @ 1:00am

    Need the losses?

    Maybe they need a tax shelter.

     

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  3.  
    identicon
    JustMatt, Feb 15th, 2008 @ 4:42am

    Nah, it can't be that easy

    To bypass court ordered obligations. Just declare your company bankrupt, get a friend to loan you some money, and blow off your original obligations???

    Sheesh, I'm crazy, but not nearly crazy enough to understand lawyers.

     

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  4.  
    identicon
    Alaric, Feb 15th, 2008 @ 6:07am

    Suspect

    Why would a private equity firm bet on a legal claim that has yielded precious few court victories?

    Who doesn't want SCO to go away?

    I'd look into that private equity firm and start connecting dots. Microsoft can't be too far away.

     

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  5.  
    identicon
    Anonymous Coward, Feb 15th, 2008 @ 6:24am

    obligatory quote

    WHY WAS I PROGRAMMED TO FEEL PAIN

     

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  6.  
    identicon
    Overcast, Feb 15th, 2008 @ 6:45am

    Even if SCO won... That doesn't really mean people would actually start to use it.

    With the overall odds... I would think that money would be 'safer' risked in Vegas.

     

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  7.  
    identicon
    Me, Feb 15th, 2008 @ 7:49am

    Flush

    I hear a giant sucking sound!

     

    reply to this | link to this | view in thread ]

  8.  
    icon
    slimcat (profile), Feb 15th, 2008 @ 8:33am

    Re: Suspect

    "Microsoft can't be too far away."

    And, don't forget the Mormon Mafia.

     

    reply to this | link to this | view in thread ]

  9.  
    identicon
    Anonymous Coward, Feb 15th, 2008 @ 8:53am

    What else does Stephen Norris Capital Partners invest in? I want to stay clear of them.

     

    reply to this | link to this | view in thread ]

  10.  
    identicon
    Anonymous Coward, Feb 15th, 2008 @ 9:05am

    Look into Stephen Norris and guess where it leads? Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud though Norris is now denying his involvment. Guess who Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud is in business with on taking Four Seasons hotel chain private? None other than Bill Gates. Cue sinister music now....

     

    reply to this | link to this | view in thread ]

  11.  
    identicon
    Eunos94, Feb 15th, 2008 @ 9:25am

    They never thought they *could* win.

    "Why is it that suddenly these investors believe the company can actually win a legal battle?"

    They don't and never did. It's not about winning. It's about using the broken IP system to blugdeon others by proxy. Win or lose, it's a cheap way for (someone) to slander and libel the Linux community and get away with it for a penny or two.

     

    reply to this | link to this | view in thread ]

  12.  
    identicon
    John, Feb 15th, 2008 @ 9:31am

    Misspelling in the title

    That's not how you spell psychotic.

     

    reply to this | link to this | view in thread ]

  13.  
    identicon
    Nukem, Feb 15th, 2008 @ 11:02am

    Pungent Stench!

    I smell the stench of Verbose Capital Investment from an unscrupulous castigating Money Tree.. My Dog could easily trace it to Micro$oft.

    666 to Microsoft..

    Nukem

     

    reply to this | link to this | view in thread ]

  14.  
    identicon
    SCO stands for ..., Feb 15th, 2008 @ 12:52pm

    Somewhat Crazy Orangutans

     

    reply to this | link to this | view in thread ]


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