Filing details Intel's $3 million eSoft stake

By Stephen Shankland
Staff Writer, CNET News

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January 6, 2000; Cobalt shares surge in first-day trading
November 5, 1999

The stake Intel took in special-purpose computer maker eSoft was worth $3 million, the companies disclosed today.

The size of the chip giant's investment in eSoft wasn't disclosed when the deal was announced in November, but it was enough to send eSoft's stock rocketing upward. The $3 million figure was released in a Securities and Exchange Commission filing today.

The investment is one of several Intel has made in companies using the open-source Linux software. Intel also has invested in Red Hat, SuSE, TurboLinux and VA Linux Systems.

eSoft makes server "appliances," computers designed to handle specific tasks on a network more easily, more cheaply or more quickly than their general-purpose brethren.

Cobalt Networks, another manufacturer of Linux-based server appliances, raised $110 million in its IPO in November. CyberNet Systems, which writes software for Linux-based server appliances, plans to go public as soon as March.

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