Is SCO Nearing Bankruptcy?

By Steven Vaughan-Nichols  |  Posted 2007-01-10 Print this article Print

News Analysis: Novell claims that SCO is in deep financial trouble, but is the Unix company really that badly off? (Linux-Watch)

Rumors are circulating that The SCO Group is headed toward bankruptcy. But is the Unix company that took on IBM, Novell, Red Hat and the entire Linux world really in danger of going broke? The latest rash of rumors was triggered by a claim in a recent legal document, Novells Redacted Reply to SCOs Opposition to Novells Motion for Partial Summary Judgment or Preliminary Injunction, that Novell filed in its SCO lawsuit.
Click here to read about a major legal blow to SCO.
In it, Novells lawyers stated that, "For SCO, bankruptcy is inevitable; it characterizes its assets as merely those remaining and does not rebut Novells arguments that its bankruptcy is imminent." Strong words, but its not really a prediction of imminent doom for SCO when taken in context. The Novell statement is really more in the line of a prophecy if Novell wins its point that SCO owes Novell the revenue from its Microsoft and Sun deals. Novell is going after the money that SCO has made from its last two major Unix deals. Specifically, Novell wants its share of the payments SCO received from the SVRX [Unix System V Release any] license agreements that it executed in 2003 with Sun and Microsoft. SCO has received at least $25,846,000 from these two companies through its SVRX Licenses. It was this multi-million-dollar revenue that fueled SCOs IBM lawsuits. Read the full story on Linux-Watch: Is SCO Nearing Bankruptcy? Check out eWEEK.coms for the latest open-source news, reviews and analysis.
Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

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