March 11, 2004

BayStar confirms Microsoft referral to SCO

Investment company BayStar Capital has confirmed ties between two Linux foes, saying Thursday that a Microsoft referral led to $50 million in BayStar
funding for the SCO Group.

"Yes, Microsoft did introduce BayStar to SCO," a BayStar representative said

Thursday, declining to share further details and repeating the firm's earlier position that Microsoft did not actually invest money in the deal.

Word of the Microsoft matchmaking surfaced last week when open-source advocate Eric Raymond published a leaked memo about Microsoft's help in the
BayStar investment. SCO Group confirmed the authenticity of the memo but said its author, S2 Strategic Consulting's Mike Anderer, misunderstood the
situation. Open-source fans leaped on the memo as evidence that Microsoft is aiding SCO's attack on Linux.


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