SCO Investor Demands Action or Money Back

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SCO Investor Demands Action or Money Back
Douglas Chick

According to AP, BayStar Capital Management LLC, is threatening to withdraw its financial support from the SCO Group, if the company doesn’t sharpen its focus on the potentially lucrative legal fight. Furthermore they want SCO to hire executives that are more knowledgeable in terms of intellectual property and spend less of their time and money on its Unix products. Otherwise BayStar will demand repayment of a $20 million loan.

Is this what technology companies have been reduced to? Is the worth of a company dependant on the value of its lawsuits?

Isn't it true that tech companies with no tangible value are what caused the Dot com crash along with other technology companies in the first place? If the corporation is only worth the value of its lawsuits then their stocks can only be as strong as their attorney's track record. This could also mean that the financial health of a country can only be measured by numbers on a court docket. It all seems a bit out of control to me, but then again, I'm a simple man that can be easily confused with big city accounting and lawyering.

According to the same article, BayStar has invested $745 million dollars in 160 companies, including XM Satellite Radio, and this is the first time that BayStar has demanded its money back. Perhaps BayStar is beginning to see that there isn't really the pot of gold at the end of the rainbow that they were originally lead to believe. Or even maybe, BayStar has a chief investor that is going impatient and wants more action against companies that dare use Linux?

Like most of you I ask questions that I couldn't possibly know the answers to. Still, I'm not going to worry too much about what happens to SCO. They had already confirmed that Microsoft had introduced them to BayStar, and I’m sure that if BayStar were to pull out Microsoft might suggest several other introductions.

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