The SCO-Microsoft Connection Grows Darker

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 Capitals managing partner Larry Goldfarb, Microsoft allegedly assured BayStar that it would somehow "guarantee" BayStars $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, BayStars investment ... Microsoft assured me that it would in some way guarantee BayStars investment in SCO."

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

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