Feeds

VA Linux cuts cash component from Andover acquisition

Due to 'tax concerns', apparently

  • alert
  • submit to reddit

High performance access to file storage

VA Linux Systems is to pay Slashdot owner Andover.net entirely in stock, junking the previously agreed cash element. The deal, struck in February, originally called for a $60 million cash payment to be made to Andover's owners.

They are now going to get VA stock instead - stock brought low by Wall Street's downer on hi-tech stocks, brought about largely by the Microsoft anti-trust verdict. (VA's stock price is currently worth less than a third of its value when the deal was announced). VA will now still swap 0.425 of its own shares for each Andover share, as was orginally planned, but it won't first have to knock $60 million off the total.

And the reason for the change? According to Bloomberg, the companies won't say, but the official release notes "tax concerns". Despite the pruned share price, the deal still makes sense for VA, which is trying to build up a community of kit-buying friendly users. Plus there's a lot of money to be made out of advertising, which may not be core, but it's important when you're main source of income isn't yet paying the rent. ®

Related stories

VA Linux revenues rocket - but so does loss</a
>
VA Linux buys Slashdot.org

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.