SCO Says VC Wants Out

The SCO Group's war chest may have just gotten a lot lighter. The company, which is suing IBM and several Linux end-user companies, has filed an 8-K report with the Securities and Exchange Commission stating that BayStar Capital wants SCO to redeem all of the venture-capital firm's 20,000 shares of SCO's Series A-1 Convertible Preferred Stock.

In October, BayStar bought about 3 million SCO shares, representing about 17.5% of the company, in what was supposed to be a $50 million investment. At the time, this pushed the company's cash position to $61 million, which president and CEO Darl McBride said would go toward the enhancement of its Unix operating system and software, the development of Web services, and fighting its ongoing legal battles against companies it believes have infringed upon SCO's intellectual property.

News source: InformationWeek

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