updated 03:45 pm EST, Thu February 14, 2008
SCO receives $100 million
Having almost disappeared completely late last year, SCO says it has been resuscitated by a new financing plan. Under the terms of the deal, Stephen Norris Capital Partners and "its partners from the Middle East" will supply up to $100 million, enabling SCO to reorganize and launch a new series of products. SNCP will gain a controlling interest in the company, and take it private, allowing it to slip out of Chapter 11 bankruptcy protection.
SCO first gained infamy by suing IBM and Novell, accusing the two of inserting its Unix code into versions of Linux. SCO suggested, in fact, that it was owed licensing fees by some companies merely using Linux, such as DaimlerChrysler. Observers argued that SCO's real intent was to compensate for its failing business model; in the end SCO not only lost its cases, but saw some Unix copyrights solidified under Novell. The costs of its legal venture led it to declare bankruptcy last September.