Feeds

VA Linux cuts cash component from Andover acquisition

Due to 'tax concerns', apparently

  • alert
  • submit to reddit

The essential guide to IT transformation

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.