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Caldera Government The Courts News

McBride At A Loss For Words 292

An anonymous reader writes "That, at least is the verdict of Linux Business Week's Maureen O'Gara, who reports that, with all the latest twists and turns, with BayStar and RBC in particular, SCO's CEO was finally bereft of words to describe what it's all been like. In the end he settled for 'This is like...nothing.' As O'Gara herself says, the latest SCO news is plain weird."
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McBride At A Loss For Words

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  • Hah. (Score:4, Funny)

    by oGMo ( 379 ) on Friday May 14, 2004 @03:01PM (#9155006)
    McBride is at a Loss for Words

    Maybe he shouldn't have used them all up before.

    • Re:Hah. (Score:5, Funny)

      by jtwJGuevara ( 749094 ) on Friday May 14, 2004 @03:06PM (#9155079)
      Or he can claim that someone else took his words and are using them in an open forum while infringing on licenses in the process of doing so.
      • by choconutdancer ( 576542 ) on Friday May 14, 2004 @06:12PM (#9157390)
        thats why he's at a loss for words. other people have been stealing words from him!

        other peoples sentences are just his words rearranged in a different order. they are obviously DERIVATIVE WORKS of his sentences. some sentences have had the words purposely REARRANGED to OBFUSCATE the true origin of the sentence - Darl. in fact, sometimes the senteneces other people have said are EXACTLY THE SAME are Darl's sentences. word for word. coincidence?

        a bunch of MIT rocket scientists have confirmed that Darl's sentence "yes." has been used elsewhere MILLIONS of times. this is STEALING of his IP and it must stop. sue Darl sue!

        hint to Darl: when you sue remember that (like with the IBM lawsuit) you can pick whatever value you want for damages! rather than sue for an obscenely ridiculous value like 5 Billion dollars you should really go all out this time and sue for 100 GaZillion (GaZillion - copyright Darl McBride) dollars! just think how that will make the stock price in your stock scam to go up. wow! is our legal system cool or what?
    • Re:Hah. (Score:2, Funny)

      by Kjuib ( 584451 )
      or maybe his vocabulary is just not as big as other poeples. It might be suffering from vocab-envy. That would leave him with a lose of words. I think I have some spam in in Inbox that might help him to get a bigger - vocab.
    • Re:Hah. (Score:5, Interesting)

      by Tarantolato ( 760537 ) on Friday May 14, 2004 @03:25PM (#9155342) Journal
      McBride is at a Loss for Words

      Maybe he shouldn't have used them all up before.

      This is probably a good thing. In fact, as it presently stands Darl could teach a thing or two about not running your mouth off unnecessarily to a certain [infoworld.com] other [computerweekly.com] proprietary [sdtimes.com] Unix [java.net] company [nwsource.com].
    • Re:Hah. (Score:5, Funny)

      by moviepig.com ( 745183 ) on Friday May 14, 2004 @03:36PM (#9155506)
      'This is like...nothing.'

      Not that he necessarily needs religious salvation, but... is there a trace of Zen in that quote?

      • Re:Hah. (Score:5, Funny)

        by SmackCrackandPot ( 641205 ) on Friday May 14, 2004 @04:14PM (#9156078)
        That reminds me of the scene in the Hitch Hiker's Guide to the Galaxy where Arthur Dent manages to get the entire crew out of some tricky situation by finding the right button to activate the improbabilty drive.

        Asked by Zaphod Beeblebrox if he was responsible, Arthur replies "Oh, it was nothing". The entire crew take his statement literally and continue on with their previous conversation; much to Arthur's annoyance.

        Perhaps Darl's wearing his DuoGenta, Superchromatic, Pyro-sensitive sunglasses, which have just turned black.
      • Re:Hah. (Score:3, Funny)

        by blackmonday ( 607916 )
        I would have preferred a Neo-ish response:

        "This is like...whoah."

    • Where's the story? (Score:3, Interesting)

      by woodhouse ( 625329 )
      What's next? SHOCKER: McBride blows his nose!! I know there's a weekly SCO quota on slashdot, but can we keep it to the vaguely significant stories please?
  • by Anonymous Coward on Friday May 14, 2004 @03:02PM (#9155007)
    he was referring to how much his stock will be worth.
    • Re:surprisingly (Score:5, Interesting)

      by Daniel_Staal ( 609844 ) <DStaal@usa.net> on Friday May 14, 2004 @03:13PM (#9155193)
      Baystar must think the same. Otherwise, why call selling stock at a loss a 'financial opportunity'?

      It is an opportunity, if you realize it is insanely overpriced right now, and will only go down in the future. Never mind that you are going to loose money by selling the stock at a lower price than you bought it for; they are selling it at the highest price it will ever be in the future. This is their best opportunity to minimize their losses.

      The backers are getting out. Watch SCO burn...
      • by reality-bytes ( 119275 ) on Friday May 14, 2004 @03:38PM (#9155533) Homepage

        Baystar are not selling their shares right now - they just doubled their stock by buying the 20,000 shares that the Royal Bank of Canada just cashed out of.
        • The irony is that it might be considered a 'business opportunity' to get out of this whole mess while the stock is still worth even as much as it is now...

          The stock only ever crawled out of the sewers based on the hype from their FUD; when the FUD is finally fully abated, it's probably heading right back down there once more...
        • by tjwhaynes ( 114792 ) on Friday May 14, 2004 @04:09PM (#9155998)
          Baystar are not selling their shares right now - they just doubled their stock by buying the 20,000 shares that the Royal Bank of Canada just cashed out of.

          Yes but Baystar is not buying the currently-$5-and-dropping publicly traded shares. Baystar is buying 20,000 Series A shares worth $1000 each. Now the interesting part is that if SCO is forced to redeem these special stocks, Baystar gets considerably more than the $1000 per share because of the penalty clause - I think it's a 20% premium, so make that $1200 per share. So Baystar is unlikely to be out of cash if SCO is forced to re-imburse it. In fact Baystar will be up $8 million dollars on their holding of 40,000 Series A shares.

          Cheers,
          Toby Haynes

        • IF baystar really backed the deal entirely

          we all know that RBC took a bath on the shares they converted at 13.50 per, (a loss of ?60? percent) but we do NOT know at what price they sold their premium 20k shares to baystar at.

          if baystar made guarantees to RBC before the inital purchase of the 30 mill$us of stock, it's very possible, they sold their 20k shares for the amount they lost on the conversion, and no one is talking about it.

          do you know, does anyone, that they sold their 20 million dollar inve

      • Re:surprisingly (Score:3, Insightful)

        by gilesjuk ( 604902 )
        The previous rises in price were due to the potential earning power of 'taxing' large organisations deploying Linux. Since that's unlikely to happen and their case is looking weaker it is no wonder their shares are falling.

        It's not like they sell anything to make a profit.
      • Re:surprisingly (Score:3, Insightful)

        by zowch ( 552785 )
        The 'financial opportunity' in the article refers to BayStar's purchase of $20 million worth of the Royal Bank of Canada's share of SCO at less than the Bank paid for them. Therefore, BayStar is coming out on top in the deal, making it a 'financial opportunity.'
  • by Triumph The Insult C ( 586706 ) on Friday May 14, 2004 @03:02PM (#9155011) Homepage Journal
    no no ... see, he was refering to what SCO has based their case on
  • Yah (Score:5, Funny)

    by ohstoopid1 ( 573728 ) <dj AT ozug DOT com> on Friday May 14, 2004 @03:02PM (#9155014)
    Thats like.... woah
  • by dacarr ( 562277 ) on Friday May 14, 2004 @03:02PM (#9155019) Homepage Journal
    As usual, here it is [yahoo.com]. Down US$.15 as of posting this.

    FP?

  • Stop reporting it (Score:5, Insightful)

    by fr0dicus ( 641320 ) on Friday May 14, 2004 @03:02PM (#9155020) Journal
    SCO now thrive on headlines alone. Stop talking about them and they'll go away quicker.
    • by grafikhugh ( 529618 ) on Friday May 14, 2004 @03:09PM (#9155122) Homepage
      At this point negative headlines do not help their stance. The lawsuits are real and they will be settled in court. I think its important for the negative press to keep flowing. If we stop paying attention to their actions then maybe that could be interpretted as us not caring what the outcome is or worse that we fear what the outcome will be.
    • by trybywrench ( 584843 ) on Friday May 14, 2004 @03:14PM (#9155207)
      SCO now thrive on headlines alone. Stop talking about them and they'll go away quicker.

      well they're not thriving anymore. It's kind of sad really, SCO use to be contender.Don't they have a spot secured on the UNIX timeline along with ATT and the others somewhere? Too bad mgmnt/greed/stupidity/etc got in the way. oh well, you know what they say, out with the old in with the nucleus.
      • Re:Stop reporting it (Score:5, Informative)

        by mattdm ( 1931 ) on Friday May 14, 2004 @03:34PM (#9155466) Homepage
        well they're not thriving anymore. It's kind of sad really, SCO use to be contender.Don't they have a spot secured on the UNIX timeline along with ATT and the others somewhere? Too bad mgmnt/greed/stupidity/etc got in the way. oh well, you know what they say, out with the old in with the nucleus.

        In this case, very literally out with the old. This company isn't the historical SCO at all, but rather an offshoot of the Linux company Caldera, renamed to SCO after buying many of that original company's Unix assets.

        The original SCO lives on renamed to Tarantella [tarantella.com] -- which was basically their only profitable software product at the time of the sale.
    • It seems what happened is that we DID quit talking about them for at least several days. Now we are talking about how they aren't saying anything! I hate to see what SCO news is going to be like after they dissolve the company...

      "SCO Still Closed
      From the This-Is-The-365th-Time-We-Posted-This Dept."
  • by orthogonal ( 588627 ) on Friday May 14, 2004 @03:03PM (#9155033) Journal
    SCO's CEO was finally bereft of words to describe what it's all been like. In the end he settled for 'This is like...nothing.'

    McBride then followed-up: "But at least I'm not 'Robert S.' Rumsfeld,"
  • 0+0=0 (Score:3, Funny)

    by mabu ( 178417 ) on Friday May 14, 2004 @03:03PM (#9155035)
    It's obvious Darl was describing the value of his company [yahoo.com].
  • 'This is like...nothing.'

    I don't suppose he was looking at the SCOX share price when he said it?
  • Loss of words. (Score:2, Insightful)

    by Anonymous Coward
    Smartest thing he's ever done.
  • by Anonymous Coward on Friday May 14, 2004 @03:04PM (#9155053)

    So McBride figures BayStar doesn't have a legal leg to stand on

    Brought to you by the words "Shoe", "Other" and "Foot".

  • by Mr. Darl McBride ( 704524 ) on Friday May 14, 2004 @03:04PM (#9155058)
    You can't imagine what this last year has been like for me. I'd like to see you try and simplify the kind of a rodeo I've been on. I've squeezed this tiny little company for millions in salary while utterly destroying any chance of a future it's had. And in doing so, I've made dozens of other millionaires and paupers alike. You try and simplify that kind of thing into an analogy.

    As if all that weren't enough, I've tried to bring you people gold, and getting my home IP banned from Slashdot was my only thanks.

    This will be my last post to Slashdot as Mr. Darl McBride. Mod it up or mod it down, I don't much care anymore. I'm going back to my simple ranch hand ways while Boies and Sontag round up the rest of whatever's left for our ginormous IP firesale, if there's even anything there to capitalize on anymore.

    Thanks to those of you who have moderated me up in the past, those of you who took the time for pithy and cute replies even if you didn't like me, and those who lightened up enough to have a laugh instead of freaking. It's been like... like... it's been like nothing else.

    ~Darl

    • by GPLDAN ( 732269 ) on Friday May 14, 2004 @03:27PM (#9155383)
      There is a good comment at the end of the parent article. The comment is, predators have their eyes close together - to focus on prey. Prey has eyes far apart, to see predators better.

      Now look at Darl's beady eyes. Which do you think he is?

      Does anyone know what Darl is actually going to put on his tax return this year? Well in excess of $1M. He can retire to his farm, and count his coins, until some other company run by scumbags needs a pointman to take the stones thrown at them. In fact, I bet if you interview the current class at Harvard Business School - there are a lot of people who admire Darl for agreeing to be the beat-down man for his pittance of the booty.

      Of course, most of the masterminds of the Enron scandal seemed to come from HBS, so there ya go.
  • article text (Score:5, Informative)

    by Anonymous Coward on Friday May 14, 2004 @03:04PM (#9155063)
    the site seems to be slowing, but not dead yet. here's the text:

    SCO CEO Darl McBride, the most hated man in the computer industry, says he's reached for an analogy to describe SCO's experience since suing IBM. "This is like...," he's said to himself, groping for an elucidating comparison, only to conclude, "Nothing...Nothing compares to what's happened in the last year."

    What happened in the last few days proves his point.

    BayStar, the venture capital outfit that wants its money back from SCO - a highly uniquely situation even for the computer business - has suddenly and out of the blue doubled its position in the company.

    The Royal Bank of Canada, which BayStar brought into the $50 million investment the pair made in SCO last fall, the investor that has reportedly never expressed doubts about the strength of SCO's position or, unlike BayStar, has never complained to SCO about its behavior, sold $20 million worth of its SCO shares to BayStar.

    And the bank is converting the rest of its preferred stock - that it paid $10 million for - into 740,740 shares of SCO common presumably to dump it on the public market. Presumably too it won't sell the stock immediately since the conversion cost it $13.50 a share, more than double what SCO's been selling for.

    BayStar and the bank's $50 million represented 17.5% of SCO.

    Neither BayStar nor the Canadian bank will discuss what happened. The bank merely calls its action a "business decision" and BayStar claims it was presented with "a strategic and financial opportunity."

    McBride claims he doesn't know any more than we do. He's had barely any contact with the bank and all he knows is that he got a letter from them last Wednesday outlining what it was doing, but not explaining why.

    McBride also claims that he doesn't know what BayStar's about either.

    BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back. The money of course is paying for SCO's legal pursuits.

    McBride said he didn't know how buying the bank's shares would strengthen BayStar's position. BayStar, for instance, doesn't have a seat on SCO's board and the shares it owns are non-voting stock.

    Presumably, the shares that the Canopy Group owns - and remember, Canopy got close to $300 million out of Microsoft to settle an antitrust suit - would trump any notions BayStar might harbor about a hostile takeover.

    BayStar managing partner Larry Goldfarb, the guy responsible for the firm's investment in SCO, told the New York Times a couple of weeks ago that he wants SCO to drop its remaining Unix business, jettison its current management, husband its resources, focus on pursuing its IP claims and mind its Ps and Qs in what it says publicly.

    Apparently BayStar's lawyers have been saying the same thing to SCO's lawyers.

    One wonders whether Goldfarb taking the Times into his confidence made the bank lose its confidence in its investment, hold BayStar responsible and demand that BayStar buy it out.

    BayStar's comment about buying the bank's shares being a "financial opportunity" hints that BayStar paid less for them than the bank did.

    Goldfarb told the Times and his PR guy told us - Goldfarb was reportedly out of the country when the news broke and couldn't speak for himself - that despite his disapproval with the way SCO is run he is convinced of the legitimacy of its IP claims and of its winning its case against IBM.

    According to BayStar's Web site, Burst.com is part of its portfolio. It's unclear what the VC's position is, but Burst is the company, reduced to one or two people, that's suing Microsoft for a tidy packet. It's one of the private antitrust suits that Microsoft has yet to settle.

    Burst claims Microsoft, which it collaborated with for two years, ripped off a media transmission technology it designed to send video and audio files electronically and stuck it in Media Player 9.

    Burst has no other business outside its suit and evidently is the model BayStar wants SCO to emulate.
    • And the bank is converting the rest of its preferred stock - that it paid $10 million for - into 740,740 shares of SCO common presumably to dump it on the public market. Presumably too it won't sell the stock immediately since the conversion cost it $13.50 a share, more than double what SCO's been selling for.

      Alternatively, RBC shorted just under 5% (don't need to report) of SCO when it made the PIPE investment, which is apparently a common business practice, and it redeemed this number of shares in order
  • by Savatte ( 111615 ) on Friday May 14, 2004 @03:05PM (#9155066) Homepage Journal
    funny, that's what my acountant said when I asked about the money I had left after investing in SCO.
  • RBC pulling out (Score:5, Informative)

    by Ubergrendle ( 531719 ) on Friday May 14, 2004 @03:05PM (#9155067) Journal
    I work at another Canadian bank, but can confirm that some of my contacts (ex-colleague of mine, actually) in the IT section of RBC are *very* happy with the investment banking's decision to pull out of SCO. For once it appears like the right hand knows what the left hand is doing... their IT department has a few linux pilot projects (one including desktop replacement!) which suggest a conflict of interest internally.
  • by Anti Frozt ( 655515 ) <chris...buffett@@@gmail...com> on Friday May 14, 2004 @03:05PM (#9155071)

    SCO CEO Darl McBride was quoted commenting on their current case against IBM as "This is like...nothing."

  • Bring in the SEC! (Score:5, Interesting)

    by badmammajamma ( 171260 ) on Friday May 14, 2004 @03:06PM (#9155076)
    The seem ripe for an SEC investigation. How many shady share trades can they go through before someone looks at it?
    • Re:Bring in the SEC! (Score:4, Interesting)

      by bersl2 ( 689221 ) on Friday May 14, 2004 @03:29PM (#9155400) Journal
      This [yahoo.com] says it all:

      Insider sales (over last 6 months): 75,000
      Insider purchases: N/A

      Or am I just clueless about how this kind of stuff works?
    • The[y] (sic) seem ripe for an SEC investigation. How many shady share trades can they go through before someone looks at it?

      Yeah, well, there's quite the good complaint already submitted, though I don't think it's to the right address. The detail the guy went into with regard to the obvious shady stock trading activities since this case started is pretty astounding.

      Take a look at it here [rcn.com].

  • by roystgnr ( 4015 ) <roy&stogners,org> on Friday May 14, 2004 @03:06PM (#9155089) Homepage
    "BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back."

    That's right, Darl, and don't you just hate it when someone accuses you of doing something wrong but refuses to tell you precisely what?
  • Sue and Grabbit (Score:5, Interesting)

    by Draoi ( 99421 ) * <draiocht&mac,com> on Friday May 14, 2004 @03:08PM (#9155114)
    BayStar managing partner Larry Goldfarb [...] told the New York Times a couple of weeks ago that he wants SCO to drop its remaining Unix business, jettison its current management, husband its resources, focus on pursuing its IP claims and mind its Ps and Qs in what it says publicly.

    And there's the bottom-line. Don't produce anything worthwhile and use your <ahem> IP to generate revenue via lawsuits. As if we didn't know ....

    Still, the 'jettison management' bit has to have Darl sitting on the edge of his seat!

    • Yep, they should have phrased that better, and used the latest "fix all" hype for self-justification, since no nay-sayer would be able to argue against it -

      "...drop its remaining Unix business, offshore its current management, "

    • by dazed-n-confused ( 140724 ) on Friday May 14, 2004 @03:59PM (#9155846)
      the 'jettison management' bit has to have Darl sitting on the edge of his seat!

      And here's a picture of Darl's seat [www.sco.pl] , courtesy of SCO's just-closed Polish office. (The former manager of which is now setting up his own Linux business, specializing in helping users migrate from SCO's software onto Linux -- which is not SCO's, of course! -- see Groklaw [groklaw.net] for details)

  • Page weirdness (Score:4, Interesting)

    by dacarr ( 562277 ) on Friday May 14, 2004 @03:08PM (#9155116) Homepage Journal
    A little offtopic, but has anyone noticed that the advert server for this site is having trouble servicing the slashdotting that Linuxworld is taking?
  • by stankulp ( 69949 ) on Friday May 14, 2004 @03:10PM (#9155140) Homepage
    "BayStar, the venture capital outfit that wants its money back from SCO - a highly uniquely situation even for the computer business - has suddenly and out of the blue doubled its position in the company."

    Bill is not going to give up on this stalking horse.

    This could go on forever.

    I guess that's the whole freaking idea.
  • by jamienk ( 62492 ) on Friday May 14, 2004 @03:11PM (#9155165)
    The SCO/BayStar/RBC deal going bad is like...

    When Stalin's and Hitler's alliance collapsed.
  • by raider_red ( 156642 ) on Friday May 14, 2004 @03:13PM (#9155195) Journal
    I guess we have the next part for Keanu Reeves to play. It's at about his intelligence level too.
  • by fsck! ( 98098 ) <jacob.elder@gmCHEETAHail.com minus cat> on Friday May 14, 2004 @03:15PM (#9155211) Homepage
    I can't read that article, the site is too painful to look at. That orange and black checkered background strobes violently when the pages is scrolled on a flat panel screen. It's like watching Pokemon with one eye while someone rubs salt in the other.

    Interesting though, two of the embedded ads were error pages from IIS. "Too many users are accessing the site at this time" or something. Clearly, whoever is advertising on linuxworld.com is a true believer.
  • Pot, meet kettle (Score:5, Insightful)

    by linuxtelephony ( 141049 ) on Friday May 14, 2004 @03:17PM (#9155238) Homepage
    BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back. The money of course is paying for SCO's legal pursuits.

    So, Baystar's demanding their money back due to breach of contract without telling how the contract was breached means they don't have a legal leg to stand on.

    Why does this sound so familiar?

    Oh, that's right. SCO claims to own code that was put into Linux, but won't tell what code SCO claims to own.

    Is this Darl's way of admitting that SCO doesn't have a legal leg to stand on?
  • So does this mean that Darl's case is as likely to arouse laughter as 'Seinfeld'?

    "Darl is gettin' angry!"

  • by krumms ( 613921 ) on Friday May 14, 2004 @03:18PM (#9155257) Journal
    ... is BayStar, who seems to be much more interested in funding IP lawsuits than in Real Business.

    I thought "Wow, the stockholders have woken up!" when I first read about the whole BayStar thing.

    But fact is, BayStar has issues with SCO because the former is saying "Dump all your staff, minimize expenses, and just sue, sue, sue." and the latter isn't totally complying - so BayStar is taking their ball and going home.

    The fuckwits.
    • by phasm42 ( 588479 ) on Friday May 14, 2004 @03:50PM (#9155681)
      The parent poster makes an excellent point. I sometimes wonder about SCO's employees, the ones that actually wrote their software. I wonder how they feel about SCO attacking Linux. It would be pretty weird if one day you came to work and found out that your new CEO has decided to attack other companies using baseless accusations because your funding comes from a parasitical IP company. It's the sorta thing that would make you want to quit -- if you weren't already being laid off because the company didn't need to actually produce anything.
  • I'm told... (Score:5, Funny)

    by AchilleTalon ( 540925 ) on Friday May 14, 2004 @03:19PM (#9155277) Homepage
    he's already planning to write a book on this experience and for living after SCO has finally die.

    Proposed titles for the book includes:

    Gates of the Hell!

  • by Eggplant62 ( 120514 ) on Friday May 14, 2004 @03:22PM (#9155300)
    Would you be proud of your activities after having ruined your corporation's reputation in the business environment? I wonder how the guy sleeps at night.

    SCO has no chance of surviving even if they get the
    $5 billion by some stroke of insane luck. Who would do business with a company headed up by this overly litigious asshole? "Contracts are what you use against parties you have relationships with," indeed.
  • by Performer Guy ( 69820 ) on Friday May 14, 2004 @03:25PM (#9155351)
    He was going to say "This is like that bank heist in Illinois that went wrong, we had to shoot our way out.", but realized he was talking to the press and not his buddies at Canopy and managed to stop himself just in time with "This is like... nothing".
  • Summary (Score:4, Insightful)

    by sethadam1 ( 530629 ) * <ascheinberg@gmai ... minus physicist> on Friday May 14, 2004 @03:25PM (#9155354) Homepage

    Nothing too interesting to see here, folks. In summation: Darl is still a jackass.
  • déjà vu (Score:3, Insightful)

    by CodeMonkey4Hire ( 773870 ) on Friday May 14, 2004 @03:27PM (#9155369)
    BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back. The money of course is paying for SCO's legal pursuits.
    This sounds like when SCO was playing Hide the 8-ball [slashdot.org] with IBM's "infringing code." (The link is from an article about Autozone vs. SCO.)
  • by Ghengis ( 73865 ) <SLowLaRIS&xNIX,Rules> on Friday May 14, 2004 @03:27PM (#9155377) Homepage Journal
    The Royal Bank of Canada, which BayStar brought into the $50 million investment the pair made in SCO last fall, the investor that has reportedly never expressed doubts about the strength of SCO's position or, unlike BayStar, has never complained to SCO about its behavior, sold $20 million worth of its SCO shares to BayStar.

    That has to be one of the worst sentences I've read in a news article. I know it's still gramatically correct, but talk about hard to follow! Sure it may be off-topic, but WOW! It looks as if anyone can be a writer these days.
  • by phasm42 ( 588479 ) on Friday May 14, 2004 @03:28PM (#9155397)
    I think Baystar wants to keep SCO low profile and is telling McBride to shut his mouth because if more people were aware of their parasitical business model, I think it would hurt them financially and they might suffer some backlash from the public at large. As it stands now, probably only the IT community, and maybe just a subset of that, is aware of the implications of this lawsuit.
  • by canfirman ( 697952 ) <pdavi25&yahoo,ca> on Friday May 14, 2004 @03:31PM (#9155426)
    Burst has no other business outside its suit and evidently is the model BayStar wants SCO to emulate.

    So let me get this straight...BayStar has bought up RBC's investment in SCO and wants SCO to get out of every other business it's in and focus on it's pending lawsuits? Doesn't that strike anybody as odd? Basically, BayStar has told SCO to put all of it's eggs in one basket, hoping that the bottom doesn't fall out. If SCO loses against IBM, then there would be nothing left, the stock would take a pounding (probably become "Penny Stock"), and BayStar loses on it's investment. Strange.

    Either BayStar is betting a huge wad of cash on this "horserace" hoping for the big payoff, knows something we don't (which I doubt), or is really stupid. Whatever the management at BayStar is smoking, I'd like some of that.

    • by Performer Guy ( 69820 ) on Friday May 14, 2004 @03:40PM (#9155554)
      The entire pretext of the BayStar investment was the I.P. dispute. So yes, they're betting a huge wad of cash on this horse race. Nothing else about SCO justifies any of the investments made. The money is a war chest to pay lawyers. This is 100% about the copyright dispute. Unfortunately for this grand plan the copyright dispute has been transformed into a pure contract dispute. But infact this is part of SCO's scheme, if SCO wins they'll spin it as a copyright victory and scare the bajesus out of everyone and hike their value in the process. The Press, ever the uneducated dolts will swallow this hook line and sinker and publish SCOs anti-Linux FUD.

      This is why SCO are suing the "end users" they chose. They're the only ones SCO has a chance with because they've signed SCO contracts permittig things like audits. Even the end user suits aren't about copyrights, they're about contracts. Should SCO win they'll be hyped as copyright victories too. This is the strategy.
    • by Jahf ( 21968 ) on Friday May 14, 2004 @03:51PM (#9155701) Journal
      "Horserace" is my guess.

      Think of this situation as the mirror of an Angel Investor with an up and coming company. The Angel might invest in 10 startups and have 9 of them die before going public and yet still make a fortune.

      In this case, if they can buy 10 failing companies $100M each, each having a $1B+ lawsuit in process, only 1 of those guys has to win their lawsuit for BayStar to make their money back and then some.

      What is the best chance that BayStar has for SCO to win? SCO has to focus EVERYTHING on winning (even though by doing so they almost certainly will disappear after the win anyway).

      Perhaps this should be the defition of a "Devil Investor"?

      I wouldn't be at all surprised if SCO hinted that they would do just this, but they probably din't -commit- to it.

      Of course we all know that some times 10 companies out of 10 fail, so BayStar could screw themselves out of the cash, which is why they put pressure on their investments to do the burn-out legislation in an all-out attempt to win.

      And I'm with you, I would smoke hundreds of millions of dollars if someone gave me billions to do so :)
    • So let me get this straight...BayStar has bought up RBC's investment in SCO and wants SCO to get out of every other business it's in and focus on it's pending lawsuits? Doesn't that strike anybody as odd?

      No, because Baystar's largest investor [baystarcapital.com] is owned by Microsoft co-founder Paul Allen, and their eighth largest investor is Microsoft. This should surprise no one.
    • Either BayStar is betting a huge wad of cash on this "horserace" hoping for the big payoff, knows something we don't (which I doubt), or is really stupid. Whatever the management at BayStar is smoking, I'd like some of that.

      Or Baystar is merely a front for Microsoft, whose interest in SCO has nothing whatsoever to do with SCO's profit margin, long term business viability, or direct return on investment vis-a-vis the value of SCOX stock.

      Which has already been well documented publicly.
    • Just a hypothesis, but perhaps BayStar's job is to get SCO to liquidate all employees and make it easy for M$oft to buy out the rights if they hold up against Novell. BayStar does all the dirty work, and then M$oft gets to buy the IP and put it's big lawyers against IBM's big lawyers.

      If the IP doesn't work, BayStar has probably been assured that M$oft will reimburse them for any losses through a lucrative investment deal down the road. They DO have over a billion in the bank after all. $50 mill is pocket c
  • by anandpur ( 303114 ) on Friday May 14, 2004 @03:32PM (#9155439)
    As we know,
    There are known knowns.
    There are things we know we know.
    We also know
    There are known unknowns.
    That is to say
    We know there are some things
    We do not know.
    But there are also unknown unknowns,
    The ones we don't know
    We don't know.

    --Feb. 12, 2002, Department of Defense news briefing

    Next Day :

    I believe what I said yesterday. I don't know what I said, but I know what I think... and I assume it's what I said
    • by nicophonica ( 660859 ) on Friday May 14, 2004 @04:18PM (#9156138)
      I must say I detest Rumsfeld and his complete and intentional lack of conventional ethics. However, this statement, while highly abstract, makes sense.

      I have a lunch box there is a tuna fish sandwich and something spongy in a brown paper wrapper. I like tuna fish, that is a 'known' and i don't have to worry about it.

      I don't know what's in the brown paper wrapper but I know better then to eat it. That's a 'known unknown' and since I'm not going to eat it, I don't have to worry about that either.

      What I didn't have any idea about, however, was that my lunch box was trapped with a spring loaded poison needle, that's an 'unknown unknown'. Because I didn't have any idea my lunch box could be trapped, I'm dead.

  • by tarranp ( 676762 ) on Friday May 14, 2004 @03:32PM (#9155440)
    SCO has made a major tactical error; they sued Novell alleging slander of title because Novell filed for the copyrights on Unix System V shortly after SCO fled for the same copyrights.

    Essentially, to allege a slander of title, you have to come to the court with

    1) Evidence that you won the title being slandered,

    2) Evidence that the slanderer knew it,

    3) and that you suffered damages as part of the slander.

    The problem is that SCO not only has failed to show evidence of 1 and 2, Novell is waving the letter around where SCO asked Novell for the copyrights.

    Now, if the court dismisses the suit stating that SCO's ownership of the copyrights is in doubt, their case against Autozone collapses, and Red hat can get summary judgement that Linux does not infringe on SCO's copyrights.

    Meanwhile IBM's counterclaims, once litigated will leave SCO in bakrupcy and the GPL will have had its day in court (IBM is suing SCO, among other things, for distributing IBM's copyrighted code while violating the terms of the GPL by forbidding the creation of derivative works).

    Free/Open Source software has been helped rather than hurt by this lawsuit; it is more famous, and its opponents are displaying themselves to be incompetent bufoons. It has educated many of us about the field of intellectual property law.

  • Ironic (Score:5, Funny)

    by CamShaft ( 103126 ) on Friday May 14, 2004 @03:32PM (#9155447)
    BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract
    I had to chuckle when I read that.
  • by linuxbert ( 78156 ) on Friday May 14, 2004 @03:43PM (#9155595) Homepage Journal
    From the Article:
    "BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back."

    hasent this been what SCO is doing to IBM - Not telling them anything..
  • by Cruciform ( 42896 ) on Friday May 14, 2004 @03:52PM (#9155719) Homepage
    Typically, once an arsonist starts a fire, they leave the building rather than watch it burn down around them.

    SCO seems to be running around locking all the doors, and they're the only ones in the building.

  • by mabu ( 178417 ) on Friday May 14, 2004 @04:14PM (#9156079)
    McBride claims he doesn't know any more than we do. He's had barely any contact with the bank and all he knows is that he got a letter from them last Wednesday outlining what it was doing, but not explaining why.

    McBride also claims that he doesn't know what BayStar's about either.


    You gotta wonder what this guy does all day in his office. I'm thinking he's the member of an uber guild on Everquest with a level 65 rogue totally decked out in planar armor.
  • by siskbc ( 598067 ) on Friday May 14, 2004 @04:17PM (#9156128) Homepage
    From the SCO press release: " The conversion will occur as permitted under SCO's Certificate of Designation, Preferences and Rights relating to the Series A-1 stock. The Series A-1 stock was purchased at a price of $1,000 per share, and will be converted to common stock based on a conversion price of $13.50 per share."

    From the article: "And the bank is converting the rest of its preferred stock - that it paid $10 million for - into 740,740 shares of SCO common presumably to dump it on the public market. Presumably too it won't sell the stock immediately since the conversion cost it $13.50 a share, more than double what SCO's been selling for."

    Always good to see quality journalism. That $13.50 is per share of *preferred stock,* which originally sold for $1000.

    Here's the math:

    They're cashing out 10,000 shares of preferred for 740,740 shares of regular. Regular is 5.16 now, which is about what it would be worth at conversion - bringing them $3,822,218. This also means their shares of preferred stock are worth $3822/share right now. It will cost $13.50/*preferred* share - not common share as claimed by the article - to convert the 10,000 shares. This amounts to a 3.5% loss on the conversion, but that looks golden right now. It certainly would have made no sense if the $13.50 were per common share, as the article mistakenly claimed. In other words, they didn't pay a $13.50 fee to sell a $5 stock.

    Also of interest - the purchase price of the stock was $10,000,000. Given the return of $3.8M, that means that they bought their stock at a price equivalent to $13.57/share of common stock. Probably looked good at one time...to someone.

  • by 0x0d0a ( 568518 ) on Friday May 14, 2004 @04:18PM (#9156133) Journal
    BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, still haven't told SCO's lawyers how SCO breached their contract.

    The irony here is just sickening.
  • by Kazoo the Clown ( 644526 ) on Friday May 14, 2004 @04:27PM (#9156269)

    There for awhile, SCO was a pretty darn good engine for anti-Linux FUD. And it's pretty clear that was the specific intent of all of Darl's motormouth behavior. But that strategy has by now completely played itself out.

    Now, the absolute WORST thing that could happen in that regard is for any of the court cases to wrap themselves up. If your goal is anti-Linux FUD, a wrap up of any of the suits would appear as a Linux stamp of approval and send it off running.

    So the question is, after attempting every stalling tactic in the book, what effect would a change in ownership of the IP at the center of the court cases have on the cases themselves? And is Baystar in a position to facilitate just such a change of ownership?

    Guess we'll know pretty soon...

  • Oh the irony (Score:4, Insightful)

    by Mr_Perl ( 142164 ) on Friday May 14, 2004 @04:47PM (#9156526) Homepage
    BayStar hasn't withdrawn its demand that SCO return its money and BayStar's lawyers, he said, <B>still haven't told SCO's lawyers how SCO breached their contract</B>. So McBride figures BayStar doesn't have a legal leg to stand on and won't be able to get its money back.
    Sounds rather familiar doesn't it?

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