Linux Foundation rains on SCO's $100 million parade

The newest SCO news is complete rubbish.

Jim Zemlin is no fun. In aninsightful blog posting, the president of the Linux Foundation does a reality check on SCO'S $100 MILLION CASH INFUSION!!!!) and finds...not much reality.

Actually let me be more clear: not only is there no $100 million dollars in cash in SCO's bank account, but if the proposal is accepted, there will only be a conditional availability of that large number.

The terms of the proposal are publicly available with the court, and what they show is that SCO would receive only $5 million dollars in cash - the rest could only be drawn down at an exorbitant rate of more than 17%. Not a very efficient cost of capital even when compared to some of the worst credit card rates in the market. This would be like me saying, "Jim Zemlin receives $50k investment" when I sign up for a new credit card.

It probably is even worse than this, Jim. According to some sources, Steve Norris, the "Carlyle Group co-founder" behind the "investment," has no money and a dwindling number of friends with money, as he recently fell out with GMG, the investment group with whom he had been officing (according to court documents).

The more I look into this, the more I think Mr. Norris takes after Darl McBride: low on substance, high on hype. Now if only Mr. Norris could find $100 million to invest in real open-source companies, he might have a fortune on his hands.

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About the author

    Matt Asay is chief operating officer at Canonical, the company behind the Ubuntu Linux operating system. Prior to Canonical, Matt was general manager of the Americas division and vice president of business development at Alfresco, an open-source applications company. Matt brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. He is a member of the CNET Blog Network and is not an employee of CNET. You can follow Matt on Twitter @mjasay.

     

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