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[News] Microsoft-SCO Connection Tighter Than Originally Thought

The Goldfarb Declaration - Updated: MS Statement

,----[ Quote ]
| According to the Declaration, Richard Emerson was not the only
| Microsoft employee Goldfarb was dealing with in connection with the
| BayStar investment in SCO. He mentions by name two others, from two
| other departments.


For context:

IBM's Memo in Support of its Motion for SJ on SCO's Interference Claims

,----[ Quote ]
| BayStar, Goldfarb testifies, dumped SCO because its stock price,
| financial performance and the viability of its UNIX products
| all appeared to be in decline, and he "was also very concerned
| about SCO's high cash burn rate." Pure financial animals get
| nervous when that happens. But the kicker was he began to
| realize that Microsoft, whose senior VP of corporate
| development and strategy had promised that Microsoft would in
| some way guarantee the SCO investment, started showing signs
| it might not do that after all:
|     "Mr. Emerson and I 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." 
| Let me interrupt my narrative to quickly ask, Why ever would
| Microsoft guarantee BayStar's investment in SCO? What would be
| the business purpose here? What would Microsoft's benefit or
| payback be? What were they hoping for as the return on the
| investment? And why didn't they wish to invest directly? Pray
| do explain. Joke. Joke. Anyhow, after the investment was
| made, Goldfarb says, "Microsoft stopped returning my phone
| calls and emails, and to the best of my knowledge, Mr.
| Emerson was fired from Microsoft."
| Ah! The well-known Microsoft 180. Kiss kiss, let's do a
| deal. Drop dead. 


Also see:

,----[ Quote ]
| "There you have it. At least a third of SCO's entire market
| capitalization, and their entire current cash reserves, is payoffs
| funnelled from Microsoft. Their 10Qs reveal that every other line of
| cash inflow is statistical noise by comparison. The brave new
| SCO source business model is now clear: sue your customers, shill
| for Microsoft, kite your stock, and pray you stay out of jail."


This also appeared in the Wall Street Journal, CNET, ZDNet, and other
prominent outlets. The public will become aware of Microsoft's fraudulent,
anti-completive and IBM /et al/ could probably sue for damages.


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