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LinuxGram: Inside the Penguin Meltdown

Oct 24, 2001, 09:58 (8 Talkback[s])
(Other stories by G2News)
"At press time, one of the executives who says he walked out of Penguin Computing because of the brouhaha going on over there e-mailed us what purports to be the inside story. You will see why he might want to keep his name out of it.

He said the layoffs were precipitated by the fact that the company's 27-year-old founder Sam Ockman didn't want to dilute his 52% ownership to less than majority control. (Say, something maybe in the neighborhood of 40%.) He said Ockman said as much. He said Ockman said he would rather have control of something small than not have control of something large.

The ex-exec explained that former Penguin CEO Marty Seyer and the management team had lined up $15 million in C Series funding, and that there was at least one serious unidentified buyout offer on the table. Sam balked over the terms and fired Marty the night before the Penguin board met last week. Sam reportedly said he could do better as a white box vendor."

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