EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

11.22.07

Microsoft, Novell, SCO, and NASDAQ Delistings

Posted in Finance, Microsoft, Novell, SCO at 8:33 pm by Dr. Roy Schestowitz

The closer one looks, the more gets revealed

There are many dots to connect and many past discussions to combine, so this post will contain many pointers and hints, essentially leaving interpretation to the reader. Whatever you make of this, it seems safe to conclude that we find patterns here. From similarities one can predict just as from history one can learn [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12].

Novell’s Finances

SubSonica points out that shortly before the deal with Microsoft, Novell faced risk of being delisted from the NASDAQ.

IMHO, Novell accepted the pact with the devil due to serious financial problems. The 348 million dollar deal allowed them some relief. Microsoft is very smart when they target struggling companies… the timing was perfect.
Follow the money, ask yourself the right questions:

http://www.itworld.com/Man/2698/060921novellnasdaq/

JUST ONE MONTH before the pact Novell was about to be delisted from Nasdaq and was having problems with the Wells Fargo Bank. I think the re-animator injection of 348 million by Microsoft converted Novell in the perfect zombie to perform its masters at Redmond commands.

The subsequent comments are worth a glance. Shane spotted this last year as well. Particularly interesting was Ron Hovsepian’s financial gain (just shortly after the deal with Microsoft had been signed). For a CEO of a large companies, such transactions would be hard to conceal. Fortunately enough, Shane had his eyes on it. We later drew further conclusions.

”Was Novell cooking the books (the ‘numbers game’)?“SCO entered in the state of bankruptcy after its shares had sunk and Acacia, which we consider to be another Microsoft proxy [1, 2, 3, 4, 5, 6, 7, 8, 9], recently followed a similar path. What about Novell?

In case you wish to know more about NASDAQ warnings and Novell’s non-compliance in 2007, see [1, 2, 3, 4, 5, 6, 7]. Some thought as Novell as a takeover target at that stage and soon afterwards Novell finally complied. Was Novell cooking the books (the ‘numbers game’)? Dana Blankenhorn seems to have scared Novell when it said that the company was merely ‘massaging’ its financial figures (Microsoft, Dell and many others do it as well, but that’s another story). Here is what a knowledgeable reader of this Web site tells us:


Keep in mind that the Nasdaq delisting issue can be justified by Novell merely as a “bureaucratic paperwork deadline problem” (in fact you can see Dell reported in the same situation at some of the news picks)the determinant and differentiating thing here is the clue of the Wells Fargo Bank, according to which, Novell was in default. And look at the figures, 600 million dollars, although I cannot quite grasp the role of Wells Fargo Bank here, I am not very good at English financial terminology, maybe since you are a native English speaker, it makes more sense to you.


With redacted disclosures [1, 2, 3] it’s hard to tell what exactly is/was going on, but clues are just about given away. Shane and I analysed and simplified some of them [1, 2, 3, 4].

It remains a fact that Novell is too Microsoft-dependent (financially speaking, but increasingly on a technical level as well [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33]). A reader of this Web site takes a very wild and speculative guess:


Going further in “black helicopter mode”, It is **my personal impression** that Microsoft might have “virtually” bought Novell (no, serious). If Novells financial situation was bad enough (think about how well corporations can make-up their financial reports, take ENRON as example), maybe they were too easy a target for Microsoft… Novell being “virtually” property of Microsoft inc. might explain many, many things, like the attitude of De Icaza towards the whole issue and the passiveness of Novell’s execs towards Ballmer’s bragging about Gnu/Linux users owing him money but this last paragraph is just pure speculation on my part…time will tell.


Bear in mind that Miguel de Icaza has been helping Microsoft not only in the EU. Recently, Miguel has helped Microsoft resolve ECMA comments. Essentially, as a Novell employee, he actively helps Microsoft getting OOXML approved as an ISO standard. Should one be surprised at all? It’s a rhetorical question. It’s stuff like that which may be one of the reasons SUSE developers abandoned the company.

Novell’s Employment

Over 250 jobs were cut in the past few months [1, 2, 3, 4]. Layoff rumours [1, 2, 3, 4, 5, 6], such as a rumour about the axing of 1,100 Novell jobs, have usually materialised. There are also the large-scale 2005 layoffs. Despite the optimistic outlook from UBS, which might have vested interests, the best advice may be to simply:

Sell Novell

It’s just an honest assessment and an humble opinion. Other people have already said (and we have also speculated) that Novell could be the next SCO [1, 2, 3, 4, 5, 6]. If you follow the external links, you’ll find that we are not alone in making such a prediction (maybe even a compelling comparison).

Eyes Back on SCO

Intellectual property litigation and various funding activities appear to have already gone beyond SCO. Speaking of which, SCO insists on carrying on with its trial, despite the setbacks and without selling its assets as some have predicted. At this stage of the trial, this seems rather insane.

Wow. SCO has withdrawn its motion, the “emergency” motion, to sell its assets.

More about this here.

Last month we brought you the astonishing news that someone actually wanted to by SCO, the now-bankrupt perennial thorn-in-the-side of the Linux community. As of today, the joke is again on them, as they’ve had to hightail it in reverse with their tail between their legs.

It was only a week ago that we found Microsoft approaching SCO using a proxy, for financial matters.

“I guess filing as MSLI instead of Microsoft Licensing is like putting on sunglasses, hoping no one will notice you”

How about this recent writeup, which bears the headline “Did Microsoft ruin SCO?”

Which comes to the scenario in mind. Gates approaches McBride and puts forth a proposition that SCO should try and make money out of Linux. He offers to bankroll the operation in a backhanded manner and then steps back to watch the action unfold. His reasoning for doing this? To have a test run before he puts Microsoft through the same paces. Either way he wins.

Never forget what Eric Raymond wrote when he parsed his way through the Halloween Documents.

There you have it. At least a third of SCO’s entire market capitalization, and their entire current cash reserves, is payoffs funnelled from Microsoft. Their 10Qs reveal that every other line of cash inflow is statistical noise by comparison. The brave new SCO source business model is now clear: sue your customers, shill for Microsoft, kite your stock, and pray you stay out of jail.

It would be far fetched to draw similar conclusions about Novell, but the possibility of insiders cannot be easily ignored.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. 'Reform' at the EPO Means Destroying the Staff Union, Crushing Patent Examiners, and Imposing on Europe a System It Does Not Want (UPC)

    The chaotic transition at the EPO -- a transition from something which has been workable to something intolerable -- and the role of the Unitary Patent (UPC), which lurks in the shadows and threatens to harm the whole of Europe



  2. Shakeup Against Patent Parasites in the US and More Rumours/Speculations About USPTO Director Michelle Lee After Trump's Inauguration

    The US patent system is becoming ever more hostile towards patent trolls, owing in part to reforms introduced under Michelle Lee's tenure, but people are still not certain that she will maintain her job and continue to fix the system



  3. EPO Abuses Now Make the Netherlands Look Like a Facilitator of Human/Labour Rights Abuses

    Rather than crack down on human rights abuses, the Dutch government now sends out the signal that it's an island for those wish to violate human rights whilst enjoying immunity (EPO)



  4. Links 20/1/2017: Docker 1.13, Linux 4.4.44 LTS

    Links for the day



  5. “Federal Circuit Had Affirmed on Every Issue in 77.4% of the Patent Trial and Appeal Board Appeals it Had Seen” in 2016

    The Federal Circuit (CAFC) and Patent Trial and Appeal Board (PTAB) continue to squash a lot of patents on software, in contrast to that fake news from patent maximalists



  6. Kudelski Group Not Only Acts Like a Patent Troll But Also Run by Intellectual Ventures Person; Mobile Market in Dire State of Patent Armageddon

    The patent thicket which pervades everything that is used by billions of people, mobile technology in particular, can be traced back to a lot of non-practicing parasites (or patent trolls)



  7. Watchtroll and His Swamp Still Blame Google (Where Michelle Lee Came From) for Improving and Gradually Fixing Aspects of the US Patent System

    Shooting the messengers (even wrongly associating yours truly with Google) in an effort to undermine patent reform when it is so desperately needed due to serious injustices



  8. In an Age of Necessary Patent Reform and Permanent Uncertainty for Software Patents the Patent Microcosm Looks for Workarounds and Spin

    Commentary on the status quo in the Michelle Lee era and some examples of bias from the patent microcosm, as well as news regarding the NFL getting sued by the Kudelski Group



  9. Michelle Lee, USPTO Director, Should Recognise That the Patent Microcosm is Her Enemy Which Hates Her

    The latest outburst from the patent microcosm, which has a temper issue and notorious disdain for judges it does not agree with, is more of what we have come to expect



  10. Battistelli is an Autocrat Above the Law and It's OK, Holland's High Council Says

    Battistelli's autocratic tendencies will not be challenged by Dutch authorities, in spite of sheer condemnation from many groups all across Europe and the entire world



  11. Beware Fake News About the Unitary Patent (UPC)

    The UPC is dead, deadlocked, stuck, in a limbo and so on; those who claim otherwise are merely lobbying (in disguise of "analysis" or "news")



  12. Shame on MapR for Pursuing Software Patents While Pretending to Stand for Free/Open Source Software

    The patents gold rush sees another company joining the 'fun', albeit this company should campaign hard against software patents rather than pursue any



  13. Doomsday Scenario in the Back Mirror as Michelle Lee Keeps Her Job (and Much-Needed Patent Reform) at the USPTO

    The future of patent reform, i.e. tackling overpatenting and patent trolls, looks somewhat more promising with today's confirmation of Lee's 'extended tenure' at the Office



  14. Links 19/1/2017: PulseAudio 10.0, Linux 4.9 Longterm Kernel

    Links for the day



  15. Corporate (Wall Street) Media Agrees That Brexit Dooms the Unitary Patent (UPC)

    The nonstop lies or the fake news about the UPC starting "real soon now" don't quite pass a reality check or a basic assessment based on fundamental concepts, such as the UPC's facilitation of subordination (to Europe) in the United Kingdom



  16. Farce of an 'Independence' for the Boards of Appeal as Another Ally of Benoît Battistelli Enters as Parasite Inside the 'Overseer'/Host

    The latest cluster of lies from the President of the European Patent Office (EPO) and direct refutation of false claims of independence for the Boards of Appeal, where the former Vice-Presidents can flock, just like the Mini Minion (Minnoye) of Battistelli



  17. Links 18/1/2017: Red Hat's OpenShift 3.4, Mozilla's New Logo/Branding

    Links for the day



  18. Union-Busting Action by Team Battistelli Takes Heavy Toll, Techrights Will Continue to Expose EPO Injustices to the World

    The Staff Union of the European Patent Office, SUEPO, which faced unprecedented and probably illegal (based on local laws) attacks, is being weakened by the worst President ever, whose own management team seems to be collapsing along with the institution he is destroying in just a few years



  19. A Lot More Fake News About the UPC, Trying to Convince People That the UK is Ratifying (It's Not, It Cannot)

    Response to some of the latest misleading (self-serving) whispers about the fate of the Unified Patent Court (UPC), which is in a deadlock due to Brexit



  20. Rumours Suggest That EPO Management is Aware of Decline in Patent Quality and is Thus Actively Lying About it to the Media/Public

    Whenever Battistelli brags about patent quality he may be consciously and deliberately lying through his teeth if the latest rumours are correct



  21. Links 17/1/2017: GIMP Plans, New Raspberry Pi Product

    Links for the day



  22. Resumption of EPO Propaganda ('Meet the President') Officially Starts Tomorrow

    Yet another one of these foolish 'Meet the President' stunts, scheduled to take place tomorrow morning



  23. Caricature: Battistelli's New Year's Resolution (More EPO Lies)

    The latest cartoon being circulated within the European Patent Office (EPO)



  24. Donald Trump Gives New Hope to Patent Aggressors and Patent Trolls

    Pessimism about the prospects of patent progress or patent reform in an age of staunchly pro-business Conservatives and glorification of protectionism



  25. More Fake News About the Unified Patent Court (UPC) Based on Lobbying Tactics From Bristows UPC and the Preparatory Committee

    Unified Patent Court (UPC) lobbying has gotten so bad that it now infiltrates general media outlets, where people are asked to just blindly assume that the UPC is coming and is inevitable, even though it's clearly in a limbo and is unlikely to see the light of day



  26. EPO Totally Silent for a Month, But Deep Inside There Are Serious Cracks

    The situation at the EPO seems to be pretty grim, even at the top-level management, and the EPO has gone into permanent silence mode



  27. Links 16/1/2017: Linux 4.10 RC4, Linux Mint 18.1 'Serena' KDE Edition Beta

    Links for the day



  28. 'Financial Director' Publishes Fake News About the Unitary Patent (UPC)

    Response to some of the latest UPC propaganda, which strives to misinform Financial Directors so as to enrich the author and his firm



  29. Independent and Untainted Web Sites About Patents Are Still Few and Rare

    Commentary about news sources that we rely on, as well as the known pitfalls or the vested interests deeply ingrained in them



  30. The 20% Rule: Patent Trolling Suffers Double-Digit Declines and Patent Troll Technicolor is Collapsing

    Significant demise or total catastrophe for the modus operandi (method) of going after companies with a pile of patents and threats of litigation


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts