Feeds

SCO makes peace with BayStar

Investor backs off backing off

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

With a little cash, The SCO Group has mollified one of the two major investors who bought into the company's legal strategy last year, only to get cold feet this year. BayStar Capital invested $20m in SCO in the form of Series A stock last fall, and recently acquired the $20m worth of stock acquired by the other major backer, the Royal Bank of Canada, after RBC pulled out.

In April, BayStar declared that SCO had breached three sections of the agreement and said it wanted its money back. From today's settlement, it doesn't appear to have succeeded. The two companies have converted the Series A stock into $13m worth of ordinary stock. BayStar receives $13m and two million ordinary shares. BayStar also revealed restrictions in the October agreement (renegotiated in February) on dumping SCO stock which may have played a decisive part in the negotiations. BayStar also relinquished voting rights and the opportunity to be on the SCO Group's board.

"After productive and substantial discussions with SCO's management team, board of directors and legal team, BayStar is extremely satisfied with SCO's current operating and cash management plans, new initiatives, management of the litigation, and plans for improving its business going forward," said BayStar CEO Larry Goldfarb in a canned statement.

SCO Group stock finished the day 38 cents down, a fall of seven per cent on the day. ®

Related stories

Bank bails out of SCO
Bigmouth McBride turned us off SCO, says investor
Investor dumps SCO
Microsoft encouraged anti-Linux investment - shock!
Alien puppet Linus swiped Linux from SCO, says balanced study
'Not the sharpest of knives' - praise heaped on Linux study author

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
IRS boss on XP migration: 'Classic fix the airplane while you're flying it attempt'
Plus: Condoleezza Rice at Dropbox 'maybe she can find ... weapons of mass destruction'
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
New Facebook phone app allows you to stalk your mates
Nearby Friends feature goes live in a few weeks
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
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.
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.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.