Darl McBride
Darl Charles McBride | |
|---|---|
| Born | 24 November 1959 |
| Died | 16 September 2024 (aged 64) |
| Occupation(s) | Entrepreneur, CEO |
| Known for | CEO of The SCO Group; SCO v. IBM lawsuit |
Darl Charles McBride (November 24, 1959 – September 16, 2024) was an entrepreneur and served as CEO of Shout TV Inc. He is most recognized for his previous role as CEO of The SCO Group. During his leadership, SCO launched the notable SCO v. IBM lawsuit in 2003, accusing IBM of contract violations and copyright infringements concerning Unix. The company eventually suffered multiple legal defeats and proceeded to file for bankruptcy.
Early life and education
McBride obtained a Bachelor of Science degree in sociology from Brigham Young University and completed a master's in industrial relations at the University of Illinois at Urbana–Champaign, where he was honored with an IBM fellowship. Proficient in Japanese, he dedicated two years to missionary work in Japan on behalf of the Church of Jesus Christ of Latter-day Saints.
Early career
Between 1988 and 1996, McBride oversaw Novell's partnership with Novell KK in Japan and subsequently held the position of vice president and general manager for Novell's Extended Networks Division focused on Embedded Systems Technology (NEST). He advanced to senior vice president at IKON Office Solutions, playing a key role in facilitating 33 company acquisitions before his dismissal in 1998. Following this, McBride initiated legal action against IKON seeking $10 million over allegations of contract breach and fraud; the matter was ultimately resolved through settlement.
After departing IKON, McBride established and led two venture capital-backed startups: SBI and Company, a professional services firm, and PointServe, which specialized in software development. Prior to assuming leadership at SCO, he also presided over Franklin Covey's online planning division.
Leadership of The SCO Group
During McBride’s leadership, The SCO Group pursued assertive intellectual property claims over UNIX derivatives that IBM had developed under license from AT&T. These assertions drew significant backlash from advocates of open-source software, free software proponents, the Linux community, and the wider technology sector.
Ty Mattingly, former Novell EVP and former colleague of McBride, commented, "Congratulations. In a few short months you've dethroned Bill Gates as the most hated man in the industry." Throughout the SCO-IBM legal battles, McBride reported receiving threats to his safety and harassment, prompting him to take security precautions. He justified the lawsuits by stating: "We're either right or we're not. If we're wrong, we deserve people throwing rocks at us."
Under McBride’s guidance, SCO’s stock price climbed sharply from below $2 in March 2003 to above $20 within half a year. Nonetheless, unfavorable rulings by the U.S. District Court in Utah caused the stock value to collapse beneath $1. In April 2007, NASDAQ issued a warning that SCO risked delisting if its share price did not remain above $1 for ten consecutive days within a span of 180 business days.
In August 2007, judicial decisions affirmed that Novell retained ownership of System V UNIX copyrights and found that SCO violated royalty agreements linked to Unix technologies. This verdict triggered a dramatic one-day stock decline of 70%, dropping prices to $0.44 per share. Subsequently, SCO filed for Chapter 11 bankruptcy protection in September 2007; shares decreased further to $0.18.
By December 2007, NASDAQ suspended trading of SCO stock following its delisting notice; shares closed at $0.12 each.
A proposed bankruptcy restructuring plan stipulated that McBride would resign from his CEO position once the plan took effect, contingent upon favorable outcomes in ongoing litigation with Novell and IBM. However, objections citing insufficient transparency led to withdrawal of the plan.
Ultimately, McBride was removed from his roles as CEO and President on October 14, 2009.
Subsequent career
On April 9, 2010, McBride purchased the intellectual property rights to SCO Mobility from The SCO Group for $100,000. The business was subsequently renamed Me Inc., with McBride assuming the roles of president and CEO by June 2011.
After leaving SCO, McBride established Shout, a company responsible for creating the SHOUT mobile application—a complimentary trivia game connected to live sports events that offered cash rewards and other prizes. In 2013, the app gained celebrity support through endorsement by Deron Williams.
Death
Darl McBride died on September 16, 2024, due to complications related to ALS. He is survived by his spouse, seven children, and nine grandchildren.