SCO Files For Chapter 11 Bankruptcy… ha ha
It seems as though SCO (the company that tried to discredit and threaten Linux) may be going down the tubes, we can only hope. It was announced on Friday that they have filed in court for Chapter 11 bankruptcy under US Law and by all accounts they are haemorrhaging cash all over the place. Since losing their high profile court cases against various Linux vendors recently it’s been all down hill for them and I can’t help thinking that nobody in the open source world will be shedding any tears. SCO’s stock price fell 43% on Friday at the news and things do not look good for them.
The company’s share price had been as high as $20 per share in 2003 when it seemed the vultures were circling, investors hoped for big pay outs from their various patent suits against Linux. It was even discovered that Microsoft had promised payments to SCO in return for Linux litigation through a third-party firm. It sounds like something out of an episode of Dallas doesn’t it?
This is some of what SCO had to say in their press release:
“The SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial and Legal Challenges
Reorganization ensures business as usual and that assets remain for continued support of customers and channel partners”
They also said:
“The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings. Subject to court approval, SCO and its subsidiaries will use the cash flow from their consolidated operations to meet their capital needs during the reorganization process.”
So while I’m sure the open source world will cheer this development and I do myself, I don’t think it really means as much as you might think, it will probably just allow SCO to write off their debts and start again but it has to damage them considerably and hopefully it will send a message to any others who think Linux is an easy target for their bogus law suits… I wonder who I could be talking about, hmm?
Right, I’m off to crack open the champagne… well maybe a Guinness at least 😉