---

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

[ 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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