Linked by Thom Holwerda on Wed 8th Nov 2006 11:24 UTC
Novell and Ximian Microsoft will pay Novell USD 348 million up front, but Novell will return USD 200 million of that amount over five years. The specific numbers came in an a filing to the U.S. Securities and Exchange Commission made by Novell late Tuesday. "The financial commitments Microsoft is making as part of this agreement are significant," company CEO Ron Hovsepian said in a statement. In related news, Microsoft has denied that its patent deal with Novell is in breach of the GPL or will automatically spread Microsoft's patent protection to other Linux distributions.
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stestagg
Member since:
2006-06-03

I mean, from face value, the whole concept of paying $348 to Novell, and then for Novell to just pay a portion of it back seems rather pointless given MS could have just paid less in the first place (basic present value math).

It's called investment-return. If Novell needs lots of capital for squashing RedHat (or something) then it expects to make a return on the money. Some(Most?) of this return will then be passwd back to Microsoft.

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