Microsoft SCO link confirmed

The confirmation means there may be basis behind the allegation that Microsoft is involved in SCO's legal efforts to get people to pay for the otherwise free Linux software.

A BayStar spokesman said yesterday that Microsoft executives talking to BayStar Capital suggested the investor should look into SCO as an investment opportunity.

SCO claims that Linux contains code that violates its intellectual property rights, and it has launched lawsuits against IBM and Novell and companies using the software.

So far investigations into links between Microsoft and SCO have failed to find direct financial links between the two companies. It was originally believed that Microsoft had financed BayStar which, in turn, financed SCO.

Yesterday's admission from BayStar indicates that it was probably only a recommendation.

When BayStar purchased SCO stock, it was valued at $16.93 and now it is trading at $9.66. µ