Welcome!

Open Source Cloud Authors: Elizabeth White, Zakia Bouachraoui, Liz McMillan, Pat Romanski, Yeshim Deniz

Related Topics: Linux Containers

Linux Containers: Article

SCO Gets $16M Offer For Its Unix Business

It will be up to the bankruptcy judge to decide whether to accept the bid or not

SCO has gotten a $16 million bid from York Capital for its Unix business. Coupled with the $10 million line of credit York is ready to provide, it's money enough to keep SCO's litigation against Novell and IBM going and to underwrite its budding mobile interests, the company says. SCO's lawyers will be filing papers related to the bid this afternoon with the bankruptcy court in Delaware.

That's where SCO landed in attempt to escape what it was sure would be its Armageddon in the Utah district court hearing the SCO v Novell scandal-of-title case.

It will be up to the bankruptcy judge to decide whether to accept the bid or not and if he does, it will then become what they call a "stalking horse bid" meant to flush any superior offers out of the high grass in the next few weeks.

SCO has reportedly been talking to other interested parties but it is unclear whether they could trump York. The window to make a better offer could be left open for maybe three weeks.

The deal SCO has cut with York would reportedly leave SCO with ownership of the litigation and what is being called the "core IP," apparently any IP necessary to the lawsuits. York, a $12 billion Manhattan firm known to buy small software companies with declining revenues and turn them around, would get a 20% interest in any licenses SCO's litigation produces. Say, if circumstances conspired to allow SCO to restart its hated SCOSource Linux licensing scheme. York would also get the right to license SCO's Unix source code and get control of its contracts with licensees. York is expected to invest in the business, which includes a bunch of sterling accounts, and attempt to grow it.

SCO says the arrangement is good for its existing customers because it separates them from the venom its litigation has produced.

York is offering $10 million down and a $6 million revenue-sharing arrangement over three years. SCO would be paid $1 million in year one, $2 million in year two and $3 million in year three. Coupled with the $10 million it says it currently has in the bank, SCO reckons it would have the wherewithal to return to Utah and submit to trial there - provided the Delaware judge keeps hold of its finances and Utah Judge Dale Kimball can't slap it with a constructive trust in favor of Novell over those $25 million or so in royalties it collected from Sun and Microsoft.

Once the trial is over, SCO's legal strategy would then be to post whatever bond may be necessary to appeal Kimball's summary judgment that Novell owns the Unix copyrights and can pull the plug on SCO suit against IBM claiming that IBM dumped SCO's proprietary Unix code into Linux, destroying its business. SCO is certain Kimball's decision will be reversed by the appeals court in Denver because it flies in the face of the federal rulebook.

Kimball has a long string of overturned summary judgments and, if his past behavior is any guide, he usually recuses himself from hearing any cases that are returned. That would suit SCO to a "T" since it feels that Kimball is prejudiced against it. SCO is hoping it never has reason to use York's $10 million line of credit, but it's there if its litigation expenses require it.

More Stories By Linux News Desk

SYS-CON's Linux News Desk gathers stories, analysis, and information from around the Linux world and synthesizes them into an easy to digest format for IT/IS managers and other business decision-makers.

Comments (1)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...