The SCO Group has received a $50m (£30m) private investment from a group led by Unix software company BayStar...
The private investment will aid SCO's financial position and help it carry out its plans, including new partnerships, development of its Unix and SCOx web services products, and enforcing its intellectual property claims.
SCO has also pushed back the date it was to double the price of its controversial Intellectual Property Licence for Linux to 1 November. The company has also delayed indefinitely its plans to send invoices to Linux users, which would have started this month.
One analyst said SCO faces tough situations in both its Unix software business and its web services software initiative.
Its efforts to secure licence fees from companies using Linux are alienating hardware suppliers that might offer its Unix software with their servers, and in web services it is up against much bigger rivals, said IDC analyst Dan Kusnetzky.
"Any time a supplier has threatened its suppliers and its customers, it's not really a good sign for them going forward in that business," he said.
The financing was structured as a private placement of SCO shares, which are convertible into common equity at a fixed conversion price of $16.93 per share. That is the average closing bid price for SCO's common stock for the five trading days before the closing.
After converting, the investors, led by BayStar, will own 17.5% of SCO's outstanding shares.
Stephen Lawson writes for IDG News Service