Xandros buys Linspire

(TheForceField.Net ) July 8, 2008 — Xandros , a Linux distro used on the Eee PC, officially announced the purchase of the Linux desktop distro Linspire last week. In an allegedly secret meeting June 19, Linspire founder Michael Robertson and CEO Larry Kettler approved the sale of the company  to Xandros. A formal press release was posted on Xandros' web site June2 to officially announce the acquisition.

Robertson hailed the move as a great step forward for both distros. In the July Linspire Letter, a monthly newsletter sent to Linspire users, Robertson explained his view of the sale. "I'm excited to see the Linspire, Freespire and CNR technology go to a worthy competitor", Robertson stated. "Linux is going through some healthy and necessary consolidation which will give resulting companies greater assets and size to deliver on larger initiatives so Linux can touch more people", he added.

The news was received with mixed reviews. Some thought the move was an opportunity to bolster the presence of Linux on the Asus Eee PC and other ultra mobile portables or as a defensive response to the recent entry of Microsoft into the Eee PC market. Others saw the transaction as a quick sell off of Linspire, which has languished in the marketplace in the last several months.

Linspire shareholders were surprise by the move. According to former CEO Kevin Carmony, who left the company in 2007, shareholders were given no notice of the meeting and were notified of the transaction by a memorandum sent after the decision was made. Carmony, also a shareholder, was incensed.

"In classic Michael Robertson form, he has once again completely disregarded the 100 some-odd shareholders of Linspire by pulling off this deal without a shareholder meeting", Carmony wrote in his blog June 30. "Just watch…this will not be good for Linspire's customers, partners or minority shareholders. I'd love nothing more than to be proven wrong! We'll know as soon as I hear what my stock is now worth", he wrote.

Editor's note: The Force Field interviewed Linspire CEO Larry Kettler earlier this year. You can hear the interview in The Force Field podcast Episode 19 .

 

 

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