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.