The SCO-Microsoft Connection Grows Darker

By Steven Vaughan-Nichols  |  Print this article Print


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Did Microsoft "guarantee" BayStar's multi-million dollar investment in SCO? Baystar's managing partner said it did. (Linux-Watch)

The cat is out of the bag. According to BayStar Capital's managing partner Larry Goldfarb, Microsoft allegedly assured BayStar that it would somehow "guarantee" BayStar's $50 million investment in SCO.

Specifically, Goldfarb has testified to the U.S. District Court in Salt Lake City that Microsoft senior VP of corporate development and strategy, Richard Emerson, "discussed a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment ... Microsoft assured me that it would in some way guarantee BayStar's investment in SCO."

Pam Jones, editor of Groklaw, reported recently that she has obtained a copy of Goldfarb's Declaration, and that the BayStar executive also said, "I had discussions with Kenneth Lustig, Microsoft's managing director of intellectual property and Tivanka Ellawala, from Microsoft's corporate development department regarding the SCO deal.

Read the full story on Linux-Watch: The SCO-Microsoft Connection Grows Darker

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Steven J. Vaughan-Nichols is editor of eWEEK.com's Linux & Open Source Center and Ziff Davis Channel Zone. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

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