SCO Granted Hearing on Potential Delisting

Groklaw Reader writes "SCO will be allowed an oral hearing on its potential delisting. The hearing is scheduled for March 17, 2005, so they again show us what they are best at: staving off impending doom. There is no way to predict the outcome of the hearings, but most of the informed speculation is negative, so there are no silver linings in this case. Unless you think they can find some crazy reason to sue the Nasdaq for billions over it..."

They Could Still be a Thorn

[iammrjvo]

Even if, in a few years, there's nothing left of SCO, all it would take would be a small legal department to continue to make trouble for years to come.

Hedge Funds

[artlu]

As a hedge fund manager myself, one of our strategies is to target distressed companies in order to turn profits. However, SCO's model of late has been dismal for the product category that they are targetting. For example, a company like Rambus ("RMBS"), which basically makes their money from I.P. regarding memory has staying power as their patents span many products and industries.

On a side note, my hedge fund does not have the resources of taking over a company, but following Eddie Lambert's role with KMart/Sears it would not surprise me if an independent company would make a requisition bid for SCO.

Aj

Re:Huh.

[Anonymous Coward]

Well it could open up the possibility of shareholder lawsuits against SCO. It makes them cheaper to buy out. It reflects a lack of confindence in SCO's ability to right itself (either through legal victory, or creating a useful product). It also means it's unlikely they're going to attract investment and prolong this beyond what's already in motion (and appearently winding down).

Re:Suing NASQAQ?

[TheFlyingGoat]

If it were the NYSE, they might:
NYSE runs Java/Linux [talkaboutprogramming.com]

Isn't it amazing....

[JustNiz]

According to this story:
http://www.theregister.co.uk/2005/02/25/sc o_titani c/

Sco's total revenues are down 59% and their SCOSource revenues are down a staggering 99%. Sco are badly losing in court and now they are probably going to be delisted.

Isn't it amazing that Darl McBride gets a salary well in excess of $1m, a bonus of 750,000, plus thousands of shares and options.

How does Darl get away with it and how can a board of directors that pay him actually be THAT stupid?

But why ?

[Anonymous Coward]

SCO themselves are meaningless in this. They are just a prop for MS and others with similar goals. They are just a patsy, a stooge if you will. And now 'their' plan to destroy Linux has failed and they have been humiliated as a business they are about to be dumped, forgotten and trodden on by their masters as they are hung out to dry by the rest of us. They have served their purpose and they are very expendible.

What happens to SCO is irrelivant, although they will just dissapear in the end. It is stooge companies vulnerable to this sort of thing that are the problem rather than SCO in particular.

SCO is as....

[KingBahamut]

nearly stupid as M$ is at times. I seem to remember hearing that Ransom Love had told McBride when he became CEO , that he wasnt aware of the shit he was going to stir up when Darl decided to sue everyone for Billions of Dollars.

Was this Premonition on Ransom's part?

possibly, seeing as now Love is a renewed Linux supporter, now (Though at the time he wasnt) Id be interested to hear what He has to say about all of this now that its about run its course.

Darl on the other hand, probably has the board that controls him committed to the idea to save the company, likely the reason they let him make all the wild and unfounded claims that hes permitted to make.

I can see clearly that IBMs 20+ project release on SF hasnt been hindered ( nor any other project of theirs of recent times ) by SCOs lawsuit against the company.

Re:Delisting

[mcc]

SCO is entirely a PR construct at this point. They have no notable products or future sources of revenue. Their stock is their sole product. They exist to try to convince enough people that they are too a real company that they can attract investors.

When your business is PR, a PR defeat is a defeat to your core business. This means that delisting is a much more serious problem for SCO than it would be for a normal company; if you take the shine of SCO's corporate presence away, what is left?

Volume is already down

[Animats]

That "E" suffix on SCOX has already driven their volume way down to about a third of the three-month average. They're now thinly traded.

And they still haven't filed their 10-K for last year. If it's not filed by the hearing date, they're going to be delisted.

There just has to be something really, really embarassing in the 10-K. Nobody files a late 10-K because of good news. And remember, since Sarbanes-Oxley became law, Darl has to personally sign the 10-K under penalty of perjury. Hide bad news, go to jail.