The $348 Million Cash Infusion That Won’t Last Forever

Posted in Finance, Marketing, Microsoft, Novell at 8:23 pm by Dr. Roy Schestowitz

A financial Web site that shills for Microsoft (there’s affiliation and proven track record) has just published its take on NOVL.

What [Novell] management says:

Isn’t it sweet to enlist the competition to help sell your own products? Novell’s Linux segment boosted sales by 114% over last year, according to the latest quarterly report, and it was “largely due to the strength of the Microsoft agreement,” according to Chief Financial Officer Dana Russell.

What [Novell] management does:

Don’t get too excited by the cash flow jump in January — that was $348 million of up-front payments from Microsoft making its way onto the cash flow statement in a one-time deal. Excluding that windfall, free cash flow has been negative in each of the last two quarters.

Novell’s bank balance is now Microsoft dependent. It didn’t have to be like this, but that’s the route which Novell has chosen. Depending on a fierce rival is never a good strategy.

Remember what Jeremy Allison had to say about the $348 million paid by Microsoft. It’s like being paid to chew an insect. Novell is not the only company to have been paid (bribed) in this way.

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  1. Dev Null said,

    August 27, 2007 at 11:23 pm


    You guys are some of the most pathetic individuals I’ve come across since the MS/Novell agreement. You cry like little bitches about anything and everything.
    All you’re accomplishing is to fragment the Linux community with this bias stand. Who is really behind these two idiots? Maybe Jihad Stallman is encouraging these impressionable brain-dead morons (is that an oxymoron?)

    Stop posting ridiculous articles and go see if you can get laid for a change. There’s gotta be some chick with lower standards out there.

  2. Serenitude said,

    August 27, 2007 at 11:36 pm


    Dev Null,

    It’s nice to read an intelligent, well-reasoned, ad-hominem-free response like yours. It helps people sympathize with your side of the issue, and shows the level of class that Roy and Shane are opposing.

    Thanks for the important and relevant facts. I’m sure the pro-Novell/Microsoft crowd is proud to have you speak for their cause.

  3. Roy Schestowitz said,

    August 28, 2007 at 12:01 am


    Jihad Stallman…“, Dev Null

    cry like little bitches…“, Dev Null

    Where have I heard all of this before? Oh, wait, it was you…

    Microsoft executives have been using similar language. Are you one of them? ;-)

  4. MattD said,

    August 28, 2007 at 10:18 am


    @Roy: This reminds me of the Barkto Incident from way back, ie old compuserve forums. There was a time when Compuserve ruled the roost as the premier online service before AOL.

    There’s a good writeup here on the Barkto incident (Rick Segal, aka MS Shill), his exposure and the Departmet of Justice Involvement:

    Microsoft Shilling and Astroturfing links and info that goes back many years:

    @Dev Null: tell everyone you agree that Linux violates 235 Microsoft patents (from the kernel to Open Office). Why Novell agreeing to this is such a great move for Linux, even without a review of the specifc patents in question.

    Tell us also why endangering all other Linux distributions as a result of this patent nonsense works in favor of a community that has spent nearly 2 decades bringing FREE and OPEN technology to the masses.

    Finally tell us why all other distros should sign a patent agreement with Microsoft stating that what used be a FREE system is no longer free and partly owned by Microsoft (without even a fight).

    I have yet to hear a defender of the Novell/Microsoft deal speak in favor of patents.

  5. Roy Schestowitz said,

    August 28, 2007 at 11:27 am


    I have yet to hear a defender of the Novell/Microsoft deal speak in favor of patents.

    You could argue that Carmony came close to this with the “pirate” remark.

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