Feeds

Bank bails out of SCO

And then there was ... one investor

  • alert
  • submit to reddit

High performance access to file storage

The Royal Bank of Canada, one of two major investors in The SCO Group's litigation against Linux distributors and customers, has discarded its A-1 stock in the company to the other major investor, BayStar Capital. The bank has converted a third of its Series A-1 stock into common stock, and sold the rest, 20,000 shares, to BayStar.

You'll recall that BayStar is seeking to extricate itself from a funding arrangement it made with SCO in October and that it re-negotiated in February, citing bad management by SCO. SCO respectively disagrees, and doesn't want to give BayStar the money back.

But just because BayStar isn't happy with SCO's management, doesn't mean it disapproves of the legal jihad against Linux. Quite the contrary, as the investment company thinks SCO should ditch UNIX™ altogether and focus on the IP litigation. SCO this week said that it was laying off staff in order to try and make its UNIX™ business profitable. However, in light of BayStar's investment and public statements by company officials, it's quite possible that BayStar may choose to acquire SCO's IP and pursue the cases against IBM, Novell and Linux customers by itself. That's not probable, but it's a possibility that has received scant attention so far. ®

Related stories

Bigmouth McBride turned us off SCO, says investor
SCO case doesn't slow Linux take-up
Investor dumps SCO
SCO lifts skirt but investors recoil
Microsoft encouraged anti-Linux investment shock!

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
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
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
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.