Quick Take: An Insane Investment in SCO

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Serial litigator SCO Group (OTC BB: SCOXQ.PK) will get a second lease on life, now that private equity group Stephen Norris Capital Partners has stepped in with a $100 million investment. The cash infusion will take the purported UNIX developer private, take SCO out of Chapter 11 bankruptcy this year, and give it enough cash to continue its legal battles against IBM (NYSE: IBM), Novell (Nasdaq: NOVL), and AutoZone (NYSE: AZO).

Assuming that the legal system hasn't gone entirely bonkers yet, the investment also sets Red Hat (NYSE: RHT) up to follow its lawsuit against SCO to its logical conclusion, after the IBM suit fizzles out. If I were Red Hat, I'd send Stephen Norris a thank-you note. Seriously, guys -- what were you thinking?

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