SCO Gets A Lifeline; Plans To Continue Quixotic Legal Quest

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

Thu, Feb 14th 2008 11:56pm — Mike Masnick

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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Filed Under: private equity, sco

14 Comments

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Scote, 15 Feb 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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Lawrence D'Oliveiro, 15 Feb 2008 @ 1:00am

Need the losses?
Maybe they need a tax shelter.
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JustMatt, 15 Feb 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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Alaric, 15 Feb 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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Anonymous Coward, 15 Feb 2008 @ 6:24am

obligatory quote
WHY WAS I PROGRAMMED TO FEEL PAIN
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Overcast, 15 Feb 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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Me, 15 Feb 2008 @ 7:49am

Flush
I hear a giant sucking sound!
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slimcat (profile), 15 Feb 2008 @ 8:33am

Re: Suspect
"Microsoft can't be too far away."
And, don't forget the Mormon Mafia.
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Anonymous Coward, 15 Feb 2008 @ 8:53am

What else does Stephen Norris Capital Partners invest in? I want to stay clear of them.
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Anonymous Coward, 15 Feb 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....
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Eunos94, 15 Feb 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.
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John, 15 Feb 2008 @ 9:31am

Misspelling in the title
That's not how you spell psychotic.
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Nukem, 15 Feb 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
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SCO stands for ..., 15 Feb 2008 @ 12:52pm

Somewhat Crazy Orangutans
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