Published in News
SCO Group proposes sale of UNIX assets
by David Stellmack on26 October 2007
Hopes to get $36 million
The SCO Group is currently in Chapter 11 federal bankruptcy reorganization protection and there has been considerable speculation as to whether or not SCO Group can or will continue as a company.
Stories are circulating that SCO Group has found a buyer and hopes to sell its UNIX assets to York Capital Management for up to $36 million, pending approval by the bankruptcy trustee. According to bankruptcy and regulatory filings, York would reportedly provide SCO with the following: $10 million in cash; up to $10 million in credit to fund its legal fight against Novell and IBM and to get 20 percent of revenue from that action; $10 million for a 20 percent stake in the company; and $6 million to license the Hipcheck products from SCO's Me mobile device software effort and to share revenue from that business endeavor.
SCO has been engaged in drawn out, expensive and thus far futile lawsuits against Novell and IBM. It urged the bankruptcy court to approve an accelerated bidding process/auction for its assets. The auction would allow other bidders to offer a higher price than York, but only if the auction is conducted within a short time period, according to SCO pleadings that were filed.
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