Bonum Certa Men Certa

SCO is Not Rescued Yet, But Group with Microsoft Connections Waves Money

Sad boy with the coins
Sneaky gits



Summary: The SCO saga is not over yet, as further delays are caused by mysterious funding

A few days ago we warned that groups with connections to Microsoft were getting close to SCO just before liquidation seemed unstoppable and imminent. Some time yesterday we began finding articles which confirm not a transaction being made but a deal being signed in the 90th minute. SJVN writes:



We don't know who's behind this latest SCO buyout craziness, but it seems a safe bet that at the bottom of it all we'll find friends of Microsoft. There's simply no sane business reason to keep SCO's anti-Linux litigation in play except to spread a little anti-Linux FUD, and Microsoft is the only company that has any real interest in seeing that happen.


Watch again who is involved:

Immediately before the crucial liquidation hearing in the bankruptcy court, SCO CEO Darl McBride signed an agreement with a company by the name of Gulf Capital Partners, backed by well-known investor Stephen Norris. Caught out by the surprise development, all parties have agreed to postpone the liquidation hearing until the 16th or the 27th of July.


We wrote about these investors in:



Doesn't this sound a little dodgy?

"We signed that deal just minutes before the court hearing, and walked in and handed it to them, " said Darl McBride, CEO of Lindon-based SCO.


Earlier on, Groklaw opined that SCO was just using delaying tactics, but later coverage cannot confirm this.

So, the bottom line of the day is that the proposed sale to Gulf-Cap-whatever-their-name-really-turns-out-to-be (see previous article) will have a hearing on July 16, as Webster earlier reported. So we will no doubt get to see the proposed agreement filed, and then objections, the usual song and dance. So, bottom line? Delay, delay, delay. It's too bad SCO can't package it up and sell delay. They'd make a fortune. It is what they are best at, I'd say.


Linux Journal has a very extensive summary, which concludes with:

As it stands, everything remains up in the air — the proposed sale is by no means final, and if it is like any of the others, is likely nothing more than a delaying tactic. If the judge has any sense about him, when and if this deal falls through like all the rest, he'll wake up and finally start sanctioning SCO for treating the Bankruptcy Code like kindling. If it falls through by next month's hearing, SCO will need a miracle even Satan couldn't help them get to avoid conversion into a Chapter 7 — once the Chapter 7 trustee gets his hands on them, they'll find themselves sold off faster than $5 Ferraris. By the time it finally happens, that champagne we all put away in 2002 will be just about right.


According to this, SCO is not guaranteed an extended lifetime. Better answers will have arrived by the end of this month however.

"[Microsoft's] Mr. Emerson and I discussed a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment.... Microsoft assured me that it would in some way guarantee BayStar's investment in SCO."

--Larry Goldfarb, Baystar, key investor in SCO

Comments

Recent Techrights' Posts

BASIC Predates Microsoft by Over a Decade, Microsoft-Controlled Sites Like The Register MS Don't Want You to Know This
The state of the media is really bad when it relies a lot on oligarchs' money and is appointing editors who are working for oligarchs
Brian Kernighan, "Only Third to Dennis Richie and Ken Thompson" (UNIX), Agreed With Someone Who Said Rust Was Just Hype, Should Not Replace C
17 hours ago
Reminder: Microsoft's "Secure Boot" Certificate for "Linux" Will be Expired in One Week
Many PCs won't manage to 'rotate' to another certificate
 
Genini Links 05/09/2025: Community, ROOPHLOCH, and PITkit
Links for the day
Links 05/09/2025: Vaccine Sceptics Poison the Well, Two Exploited Vulnerabilities Patched in Android
Links for the day
Gemini Links 05/09/2025: Logitech Lift and DIY Gemini Servers
Links for the day
Links 05/09/2025: Sainsbury's Caught Spying on In-Store Shoppers and Microsoft "OpenAI is Using Legal Threats to Harass its Critics"
Links for the day
Analogies for "Memory Safety" in Rust
Don't worry, it's Rust! It can do anything!
"Many of the Red Hat Employees Are Still Looking for Work"
Shame on IBM's CEO
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 04, 2025
IRC logs for Thursday, September 04, 2025
Microsoft Started With Code Literally From The Trash, Nothing Has Improved Since
The reality is, there are systems and code that are reliable. But they're not Microsoft's.
Hypothesis That New McKinsey/Microsoft Executive Inside Red Hat Will Outsource Research and Development Operations to India (Like They Do in IBM)
IBM is floundering
Slopwatch: Scams, Fake Articles About "Linux", Plagiarism, and Worse
Perhaps some time soon the LLMs or the "Big LLMs" will run out of money (to borrow) and go offline, leaving those slopfarms in a tough place
Gemini Links 04/09/2025: Means of Production and Rusting Out
Links for the day
Links 04/09/2025: Science, Hardware, and Eyes on China
Links for the day
Gemini Links 04/09/2025: Digital Minimalism and Social Control Media
Links for the day
IBM's GNU/Linux Divestment, Based on Hard But Anecdotal Evidence (IBM Fails to Recognise How Much Money It Made and Can Still Make From "Linux")
Love us or hate us, a lot of what we've been saying about Red Hat under IBM turns out to be rather accurate
Links 04/09/2025: Massive Microsoft Staff Cuts (Barely Reported), "Strange Conspiracy Theory Is Reportedly Spreading Inside OpenAI"
Links for the day
Activists Can Win, But Keep an Eye on the Ball and on the Trophy
GitHub is dying, it was a loss-making trap, not free hosting
Gemini Links 04/09/2025: Katrina Remembered, Distracted Driving, and Virtual Economics
Links for the day
At This Point It's No Longer Matthew Garrett But People Who Fund Matthew Garrett (or Companies That Fund His SLAPPs Against My Wife and I)
The only thing worse than misogynists are misogynists who fail to respect other people's right to go on holiday
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 03, 2025
IRC logs for Wednesday, September 03, 2025
The UEFI 9/11 - Part VI - This Serious Harm Was Planned for Over a Decade, Not an Accident or Merely Some Misfortune
The term "Serious Harm" is legally meaningful here
GNOME Unfit for Diversity and Inclusion
GNOME's leadership is using "bad words"
Brodie Robertson Addressing the Recently-Discovered Comments
Most people probably knew nothing about this until he wrote a response
Red Hat QA Team "Had Shrunk by Half Over the Past Year." (After IBM Divestment)
If Red Hat's workforce is being moved to the East, then RHEL can become a national security problem
Slopwatch: "Open Source" and "Linux" News Faked, Made by Bots and Entered Into Google News
Spam combined with slop about "Linux" has entered Google News
Links 03/09/2025: Microsoft Causes Mass Layoffs Outside Microsoft Also, "Google Can Keep Paying for Firefox Search Deal"
Links for the day
Gemini Links 03/09/2025: calendar.txt, Alhena 5.3.1, and ROOPHLOCH
Links for the day
The Theory That the Man From McKinsey, Whom Red Hat Took From Microsoft a Month Ago as Executive, Wants 'Efficiency' (Lower Salaries)
So far... no "official" word
When Your Site's Articles Are Being 'Cheapened' by Slop as Feature Images
Dr. Farnell should become an advisor to The Register MS
Certificate Authority Let's Encrypt Drops to Only Half a Dozen Capsules and 0.2% of the Whole in Geminispace, Self-Signed is the Way to Go
It used to have hundreds, according to Lupa
Doing to Red Hat What They Already Did (and Still Do) to IBM
there seems to be a drive to hire cheaper staff, and it may be led by somebody Red Hat hired from Microsoft
Links 03/09/2025: Salesforce's Latest Mass Layoffs, 93% in Large Poll at The Register MS Say UK Government Should Dump Microsoft
Links for the day
Preparations for Our 19th Anniversary Have Already Begun
When we get back we'll probably sort out some balloons and venue for the next party
Pleased After 2 Years With team.blue
Moving from a Content Management System (CMS, dynamic) to a Static Site Generator (SSG) was a wise decision that made life so much easier
The Free Software Foundation (FSF) is Being Attacked by Organisations Jealous of Its Principled Stance and Longevity
Nobody is perfect, but imperfection does not instantaneously imply sinister intent
If You Reject the Google Verdict in the US, Then You Should Also Reject the "Modern" Web (Do Something About It)
Gemini Protocol is still open; it cannot be hijacked or subverted because it's frozen by design and by intention
Open Source Initiative IRS Filing: Almost All the Money is Corporate, Stefano Maffuli (Executive Director) Takes About a Quarter of That Money for Openwashing of "AI" Ponzi Scheme
OSI is currently little but a PR/marketing agency of Microsoft
Many People Are "Leaving" Red Hat, Even High-Level Managers
Something is definitely going on at Red Hat
Techrights Has Been Subjected to Calls of Violence (and Death Threats), It Never Condoned Violence
I have no sympathy for people who call violence "free speech" and then get in trouble
Condoning Violent Behaviour and "Free Speech"
perhaps Microsoft Lunduke lost touch with what constitutes violence
Takeaway From the Google Verdict: GAFAM Has Too Much Control (Even Over the US Government and Courts With Government Appointees)
Many people feel disappointed but hardly surprised by the verdict
The Free Software Foundation (FSF) Turns 40 in One Month
As noted a few days ago, several times in fact, many people now recognise the importance of the FSF's mission, even if most people don't know what the FSF is
Many Microsoft "Assets" Are Fabricated Baloney (to Game the Numbers)
At times it seems like what we deal with are many weak patents (on algorithms), valuations or speculations based on hype ("hey hi"), and stocks held by Microsoft and its own staff
"Voluntary" Layoffs at Microsoft (to Game the Numbers, Sugar-Coating a Crisis)
"Employees interested have until the end of October to volunteer."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 02, 2025
IRC logs for Tuesday, September 02, 2025