Linux Mandrake: Buy or We Die

Such is the plea from the popular Linux distributor, Mandrakesoft.

Usually, when small companies get into deep trouble, they cut costs to the bone and plead with bankers for help. But MandrakeSoft is no typical startup. When the wolf is at the door, this Paris-based seller of the Linux computer operating system simply appeals to its fans for money.

Just before Christmas, MandrakeSoft posted a plea for help on its Web site. Faced with the need for $4 million, it asked customers and friends to buy products, purchase stock, or join its users' club -- whose benefits include voting on new features in its products.

It's all totally in character with the sharing philosophy of the open-source movement from which Linux and MandrakeSoft come. MandrakeSoft tried a similar gambit in March 2002, convincing small investors to pony up $600,000 for stock. This time, the focus is on revenues, and CEO Francois Bancilhon says his appeal yielded hundreds of thousands of dollars in additional sales at outlets that include Wal-Mart.

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