SCO Plans Rebound Thanks to $100M Lifeline
February 14, 2008 1 Comment
I have no idea how, but it looks like SCO managed to get a $100M bid that will take the company private. From the article:
Embattled Unix vendor SCO may get a new lease on life, thanks to a $100 million infusion aimed at helping it emerge from bankruptcy and pursue its controversial legal claims.
The financing comes from Stephen Norris Capital Partners (SNCP), which will take a controlling interest in SCO as part of the deal.
“Not only will this deal position us to emerge from Chapter 11, but it also marks an exciting future for our business,” said Jeff Hunsaker, the company’s president and COO of SCO Operations, in a statement.
“This significant financial backing is positive news for SCO’s customers, partners and resellers who continue to request upgrades and rely upon SCO’s UNIX services to drive their business forward,” he said.
According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.
Unless the Norris in SNCP is Chuck, I can’t see how this will help. SCO has a dying operating system on its hands along with two lawsuits that are going absolutely nowhere. I’ve not seen too much recently about their mobile offerings either. The previous bid of $36M by York seemed high, but $100M for SCO seem ludicrous to me. One has to wonder if McBride will remain with the company if this deal closes. There is a possible silver lining here though. If Novell does win its case against SCO, now there may actually be some assets for them to take.
–jeremy
Jeremy's Blog 
“There is a possible silver lining here though. If Novell does win its case against SCO, now there may actually be some assets for them to take.”
C’mon, be serious. Do you honestly think that they would leave themselves open like that? One article that I read seemed to suggest that part of the deal was that this Norris guy is going to be insured against liability.
The whole point to this exercise seems to be to do as much damage as possible without exposing any assets or liability. This is clearly a game of dirty pool. This guy doesn’t care whether or not he is in the right.