Sun 06 Jul 2008

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Edited by Paul Hales

Published by Incisive Media Investments Ltd.

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Microsoft's SCO involvement revealed

Promises, promises
A DECLARATION by SCO's backer, BayStar has revealed that the software Giant Microsoft had more links to the anti-Linux bad-boy.

The declaration made by from BayStar general partner Larry Goldfarb has turned up as part of IBM's evidence to the court.

Goldfarb says that Baystar had been chucking $50 million at SCO despite concerns that it had a high cash burn rate.

He also claims that former Microsoft senior VP for corporate development and strategy Richard Emerson discussed "a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment."

However the Vole stopped returning Goldfarb's calls immediately after BayStar committed the $50 million to SCO's cause.

Goldfarb said that soon afterwards Emerson was fired from Microsoft. Later Baystar tried to back out of its financial arrangement with SCO.

It was known that Vole had helped SCO have its first meeting with Baystar, but this email indicates that Microsoft had actually promised backing to the investor if it all went pear shaped.

More here. µ

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