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VNU Net: Linuxone's share offer details risks of Linux

Sep 24, 1999, 18:56 (0 Talkback[s])
(Other stories by Lisa Kelly)

[ This is not a negative reflection on LinuxOne. All IPO filings are filled with perfunctory warnings to potential investors; it's comparable to the legal disclaimers on software licenses. See the Red Hat S-1, for example. - LT ed. ]

"Linuxone filed with the Securities and Exchange Commission for an initial public offering (IPO) this week, with plenty of warnings for punters thinking of investing in Linux.

The US based company registered three million shares of commons stock at a price of $6 to $8 per share. It is hoping to raise $24 million from the sale and has applied for quotation on Nasdaq under the symbol 'LINX'."

"It says in its prospectus summary that it believes its operating system Linuxone, introduced last September, will, 'become one of the more popular Linux based operating systems in the world.' "

"The filing warns: 'This offering involves a high degree of risk... Our business may not succeed because open source business models are unproven.' The company says, 'no other company has built a successful open source business'..."

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