A hostile takeover of SCO

I want SCO to go away. Badly. They could ruin the computer industry today. By my quick calculations, the enterprise value of SCO is about $100 million. So why doesn’t IBM or Red Hat or even Google buy SCO and make this whole mess disappear?

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6 Comments on “A hostile takeover of SCO”

  1. Gumnaam Says:

    Because that would be rewarding misbehavior. It’s probably exactly what SCO is hoping for.

  2. greg Says:

    I’m not sure how it is a reward. Takeover the company, fire the management, and kill the products. At least, that’s what I would do.

  3. Gumnaam Says:

    Presumably the money rewards shareholders…

  4. NS Says:

    Maybe b/c it’s implicitly owned by MS:

    http://news.com.com/2100-73

    Gumnamm — it’s not the shareholders who are driving the firm behavior, it’s the management. And if they lose their jobs over it, that isn’t an incentive.

  5. greg Says:

    Good point. I forgot the Microsoft connection with SCO. Microsoft has deep pockets, which would make a hostile takeover much more expensive than merely their enterprise value (basically, equity plus cash minus debt).

  6. NS Says:

    http://news.com.com/2100-73

    Investment company BayStar Capital confirms ties between two Linux foes, saying that a Microsoft referral led to $50 million in BayStar funding for the SCO Group.

    Microsoft’s actions also aren’t likely to run afoul of the Justice Department settlement, said Richard Donovan, an antitrust partner with law firm Kelley Drye & Warren.

    "The Microsoft settlement with the DOJ does not cover something like this. It dealt with commitments about interoperability and dealings with OEMs," Donovan said, referring to original equipment manufacturers, a term for computer makers. "There was no broad provision that said (Microsoft) shouldn’t do anything else to harm other operating system owners or providers."


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