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By Steven Vaughan-Nichols  |  Posted 2004-03-04 Print this article Print

The Halloween X memo appears to link Microsoft to BayStar. "I realize the last negotiations are not as much fun, but Microsoft will have brough(sic) in $86 million for us including BayStar," said S2 Consultings Anderer in the memo.
"Microsoft also indicated there was a lot more money out there and they would clearly rather use BayStar like entities to help us get signifigantly(sic) more money if we want to grow further or do acquisitions," Anders continued in the alleged internal memo. Meanwhile, Microsoft is known to have made at least two lump sump payments to SCO in order to license Unix. Microsoft executives said in May that the company wanted to be on the right side of intellectual-property law. (Microsoft makes available a number of Unix utilities in the form of its Services for Unix product.) One of these payments was for $8 million, according to Securities and Exchange documents; the amount of the other is not known. Raymond has published a number of alleged internal memos from a variety of companies, including several from inside Microsoft. Raymond referred to all of the leaked memos he posted to the Web as the "Halloween memos," since he published the first of them on November 1, 1998, the day after Halloween. Microsoft has verified the accuracy of several of the early Halloween documents that outlined the companys strategy to compete with Linux. BayStar Capital spokesman Bob McGrath said "we have no way of knowing where it (the memo) comes from or anything about it." He added that BayStar is standing by its statement from last fall that "Microsoft was not a participant in BayStars fund" that went to backing SCO. (Editors Note: This story has been updated since its original posting to include Microsofts comments concerning the allegations.) Check out eWEEK.coms Linux & Open Source Center at for the latest open-source news, reviews and analysis.
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Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. 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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