Subject: Re: Red Hat and Cygnus unify
From: DJ Delorie <>
Date: Mon, 15 Nov 1999 12:09:27 -0500

> Except for the fact that in a public company, the rules are that such
> things must be done quietly to prevent insider trading.  If this had
> been known, it would have broken all kinds of rules.  

1. Cygnus isn't a public company.
2. We all signed an NDA with Cygnus, to not spill beans like this.
3. The insider trading rules apply to us anyway.

> This is why O'Reilly has never gone that route--once you take money,
> the rules are different,


> The decision that led to the merger with Cygnus (and likely with
> other OSS companies in the future) was one that was implicit in the
> original decision by RH to go public.  It's not a surprise.

I'm looking at it from the Cygnus side, though.  Our future, our
hopes, and our plans have all been destroyed by this.  Now we'll never
know if we were good enough to be the success we hoped for.

> This is generally true.  It's not always true.  And in any event, for
> OSS to reach certain markets, it needs players of some scale.

What about the argument that it scales by amassing little groups,
rather than needing a few large ones?  Why wouldn't a partnership be

> I don't have any idea whether this merger is a good thing, but I sure do
> think that it's short sighted not to give people even a chance to prove
> that they can do the right thing.

This is what I'm complaining about, but from the Cygnus side.  We no
longer have that chance to prove that for ourselves.