Monday, October 09, 2006

Did Microsoft guarantee BayStar's investment in SCO?

We suspected but we couldn't prove it. But it does look like it was a rogue individual officer rather than a corporate strategy.

In his declaration, Goldfarb testifies that former Microsoft senior VP for corporate development and strategy Richard Emerson discussed "a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment." Goldfarb then said that after BayStar committed the $50 million to SCO's cause, Microsoft "stopped returning my phone calls and e-mails, and to the best of my knowledge, Mr. Emerson was fired from Microsoft."

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