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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
                  AND EXCHANGE COMMISSION</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
                  D.C. 20549</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
                  8-K</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
                  REPORT</strong></font></div>
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              <td colspan="3" valign="top" width="90%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
                  to Section 13 or 15(d) of</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                  Securities Exchange Act of 1934</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
                  of Report (date of earliest event reported): December 23,
                  2005</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>VA
                  SOFTWARE CORPORATION</strong></font></div>
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                  name of Registrant as specified in its
                  charter)</strong></font></div>
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                  or other jurisdiction of</strong></font></div>
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                  Employer Identification Number)</strong></font></div>
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              <td valign="top" width="30%">&#160;</td>
              <td valign="top" width="30%">&#160;</td>
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              <td valign="top" width="30%">&#160;</td>
              <td valign="top" width="30%">&#160;</td>
              <td valign="top" width="30%">&#160;</td>
            </tr>
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              <td valign="top" width="30%">&#160;</td>
              <td valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>46939
                  Bayside Parkway</strong></font></div>
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                  California 94538</strong></font></div>
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                  offices)</strong></font></div>
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                  telephone number, including area code:</strong></font></div>
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                  687-7000</strong></font></div>
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            <tr>
              <td colspan="3" valign="top" width="90%">&#160;</td>
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              <td colspan="3" valign="top" width="90%">
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                  name or former address, if changed since last
                  report)</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
        Into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 23, 2005, VA Software Corporation (the &#8220;Company&#8221;) entered into an Asset
        Purchase Agreement (the &#8220;Agreement&#8221;) with Animation Factory, Inc. (&#8220;Animation
        Factory&#8221; and, together with the Company, the &#8220;Sellers&#8221;), a wholly-owned
        subsidiary of the Company, and JupiterImages Corporation (&#8220;Jupiter&#8221;), pursuant
        to which Jupiter purchased substantially all of the assets and assumed certain
        liabilities of Animation Factory in exchange for $9,350,000 in cash
        consideration (the &#8220;Asset Sale&#8221;). </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Sellers agreed to indemnify Jupiter for certain losses, if any, resulting
        from
        the breach of the representations, warranties or covenants of the Sellers
        contained in the Asset Purchase Agreement. Nine Hundred Thirty-Five Thousand
        Dollars ($935,000) of the cash consideration to be paid by Jupiter to the
        Sellers (the &#8220;Escrow Amount&#8221;) will be placed in escrow (the &#8220;Escrow&#8221;) for a
        period of twelve (12) months following the closing of the Asset Sale as partial
        security for the Seller&#8217;s indemnification obligations to Jupiter. On the
        six-month anniversary of the closing of the Asset Sale, an amount equal to
        Six
        Hundred Twenty-Three Thousand Three Hundred Thirty Three Dollars ($623,333)
        minus (i) the aggregate amount of any then outstanding indemnification claims
        and (ii) the aggregate amount of any previous indemnification payments made
        to
        Jupiter from the Escrow Account prior to such date, will be released from
        the
        Escrow. On the 12-month anniversary of the closing of the Asset Sale, any
        portion of the Escrow Amount that remains in escrow and is not subject to
        an
        indemnification claim shall be released from the Escrow.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Sellers agreed that, for a period of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">twenty-four
        (24)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        months</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">following
        the closing of the Asset Sale, neither of the Sellers shall independently
        or
        together, directly or indirectly, solicit or induce the employment or services
        of any of the former employees of Animation Factory who were offered employment
        by Jupiter in connection with the Asset Sale.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Sellers also agreed that, subject to certain exceptions, until the earlier
        to
        occur of (i) the 18-month anniversary of the closing of the Asset Sale and
        (ii)
        a change in control of the Company, neither of the Sellers shall compete
        with
        Jupiter in the business conducted by Animation Factory on the date of the
        closing of the Asset Sale.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the Sellers agreed to provide certain transition services to Jupiter
        for a period of six (6) months following the closing of the Asset
        Sale.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        2.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Completion
        of Acquisition or Disposition of Assets.</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        described above in Item 1.01, on December 23, 2005, substantially all of
        the
        assets of Animation Factory were sold to JupiterImages Corporation&#160;in
        exchange for $9,350,000 in cash consideration and the assumption of certain
        liabilities.</font></div>
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              <td valign="bottom" width="66%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="top" width="66%">
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                  2005.</font></div>
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        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.</font></div>
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              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">VA
                  SOFTWARE CORPORATION,</font></div>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                  Delaware corporation</font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;December
                27, 2005<font size="3"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 12.6pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 185.4pt">&#160;</font></font></font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Kathleen
                R. McElwee</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%"><font size="2">Kathleen
                R. McElwee</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:&#160;Senior
                Vice President and Chief Financial
                Officer</font></td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
        INDEX</strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="17%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font></div>
              </td>
              <td width="2%">&#160;</td>
              <td valign="bottom" width="66%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  release issued by VA Software Corporation on December 27,
                  2005.</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="17%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="66%">&#160;</td>
            </tr>

        </table>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
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{"company-data": {"conformed-name": "VA SOFTWARE CORP", "cik": "0001096199", "assigned-sic": "7372", "irs-number": "770399299", "state-of-incorporation": "DE", "fiscal-year-end": "0731"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28369", "film-number": "051286108"}, "business-address": {"street1": "47071 BAYSIDE PARKWAY", "city": "FREMONT", "state": "CA", "zip": "94538", "phone": "4085428000"}, "mail-address": {"street1": "47071 BAYSIDE PARKWAY", "city": "FREMONT", "state": "CA", "zip": "94538"}, "former-company": {"former-conformed-name": "VA LINUX SYSTEMS INC", "date-changed": "19991004"}}
SECURITIES
                  AND EXCHANGE COMMISSION
Washington,
                  D.C. 20549
FORM
                  8-K
CURRENT
                  REPORT
Pursuant
                  to Section 13 or 15(d) of
the
                  Securities Exchange Act of 1934
Date
                  of Report (date of earliest event reported): December 23,
                  2005
VA
                  SOFTWARE CORPORATION
(Exact
                  name of Registrant as specified in its
                  charter)
Delaware
0000-28369
77-0399299
(State
                  or other jurisdiction of
incorporation
                  or organization)
(Commission
                  File Number)
(I.R.S.
                  Employer Identification Number)
46939
                  Bayside Parkway
Fremont,
                  California 94538
(Address,
                  including zip code, of principal executive
                  offices)
Registrant's
                  telephone number, including area code:
(510)
                  687-7000
(Former
                  name or former address, if changed since last
                  report)
Item
        1.01
Entry
        Into a Material Definitive Agreement.
On
        December 23, 2005, VA Software Corporation (the "Company") entered into an Asset
        Purchase Agreement (the "Agreement") with Animation Factory, Inc. ("Animation
        Factory" and, together with the Company, the "Sellers"), a wholly-owned
        subsidiary of the Company, and JupiterImages Corporation ("Jupiter"), pursuant
        to which Jupiter purchased substantially all of the assets and assumed certain
        liabilities of Animation Factory in exchange for $9,350,000 in cash
        consideration (the "Asset Sale").
The
        Sellers agreed to indemnify Jupiter for certain losses, if any, resulting
        from
        the breach of the representations, warranties or covenants of the Sellers
        contained in the Asset Purchase Agreement. Nine Hundred Thirty-Five Thousand
        Dollars ($935,000) of the cash consideration to be paid by Jupiter to the
        Sellers (the "Escrow Amount") will be placed in escrow (the "Escrow") for a
        period of twelve (12) months following the closing of the Asset Sale as partial
        security for the Seller's indemnification obligations to Jupiter. On the
        six-month anniversary of the closing of the Asset Sale, an amount equal to
        Six
        Hundred Twenty-Three Thousand Three Hundred Thirty Three Dollars ($623,333)
        minus (i) the aggregate amount of any then outstanding indemnification claims
        and (ii) the aggregate amount of any previous indemnification payments made
        to
        Jupiter from the Escrow Account prior to such date, will be released from
        the
        Escrow. On the 12-month anniversary of the closing of the Asset Sale, any
        portion of the Escrow Amount that remains in escrow and is not subject to
        an
        indemnification claim shall be released from the Escrow.
The
        Sellers agreed that, for a period of
twenty-four
        (24)
months
following
        the closing of the Asset Sale, neither of the Sellers shall independently
        or
        together, directly or indirectly, solicit or induce the employment or services
        of any of the former employees of Animation Factory who were offered employment
        by Jupiter in connection with the Asset Sale.
The
        Sellers also agreed that, subject to certain exceptions, until the earlier
        to
        occur of (i) the 18-month anniversary of the closing of the Asset Sale and
        (ii)
        a change in control of the Company, neither of the Sellers shall compete
        with
        Jupiter in the business conducted by Animation Factory on the date of the
        closing of the Asset Sale.
In
        addition, the Sellers agreed to provide certain transition services to Jupiter
        for a period of six (6) months following the closing of the Asset
        Sale.
Item
        2.01
Completion
        of Acquisition or Disposition of Assets.
As
        described above in Item 1.01, on December 23, 2005, substantially all of
        the
        assets of Animation Factory were sold to JupiterImages Corporation in
        exchange for $9,350,000 in cash consideration and the assumption of certain
        liabilities.
2
Item
        9.01.
Financial
        Statements and Exhibits.
(c)
Exhibits
.
Exhibit
Number
Description
99.1
Press
                  release issued by VA Software Corporation on December 27,
                  2005.
3
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
VA
                  SOFTWARE CORPORATION,
a
                  Delaware corporation
Date: December
                27, 2005
By:
/s/ Kathleen
                R. McElwee
Kathleen
                R. McElwee
Title: Senior
                Vice President and Chief Financial
                Officer
4
EXHIBIT
        INDEX
Exhibit
Number
Description
99.1
Press
                  release issued by VA Software Corporation on December 27,
                  2005.
5