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?

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Comments on “SCO Gets A Lifeline; Plans To Continue Quixotic Legal Quest”

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Scote says:

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.

Eunos94 (profile) says:

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.

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