Author: Chris Preimesberger
Microsoft spokesman Mark Martin told NewsForge earlier this week that the company has no “direct or indirect” financial relations with BayStar. He had no comment about Goldfarb’s admission that Microsoft execs called BayStar to suggest investing in SCO.
BayStar spokesman Bob McGrath also told NewsForge last week that Microsoft as a company had no involvement, but he also could not confirm that no Microsoft-connected individuals had a personal investment in the SCO Group transaction through BayStar.
We established in Tuesday’s story that there exist many connections between Microsoft’s overall strategic goals, its deep pockets, people who have been friends and allies for a long time, and the immediate need to stay alive experienced by SCO Group. This all would fit logically with the Microsoft executives going to visit Goldfarb in Larkspur.
Why Goldfarb and BayStar would want to place such an investment in a struggling software company with a dying primary market, major public-image problems, and a mere $20,000 in licensing income in its last quarter is a question yet to be answered. This is not addressed in the BWO story; NewsForge intends to follow up on this as soon as possible.
This will allow SCO to repurchase its shares from time to time in accordance with the requirements of the Securities and Exchange Commission on the open market, in block trades and in privately negotiated transactions, depending on market conditions and other factors, the company said.
“This action reflects our strong belief in the fundamental value of our intellectual property and core business,” said SCO chairman of the board Ralph Yarro. “At current prices, we believe our stock represents an attractive investment opportunity and that this action reflects our ongoing commitment to improving long-term stockholder value.”
SCOX has had a rough week, losing 10 percent of its value on Tuesday alone and another 7 percent Wednesday, to close at $9.51 Wednesday after starting the week at just under $11. A dedicated SCO stock watcher who asked not to be identified told NewsForge that “it is not good for a company with declining revenues, mounting legal fees, and that requires special investment deals to stay solvent to be doing something like this. Personally, I think that they will not buy anything and this is just an attempt to stop the (price) slide.”
Other connected pieces of information:
NewsForge has emailed Mr. Anderer using an address furnished by SCO Group itself, but he hasn’t responded. Once again, Mr. Anderer, if you’re reading this: Please email us at editors@newsforge.com, and we will gladly let you tell us your side of the story.
When asked Thursday if Microsoft or any of its divisions had any input into the Royal Bank of Canada portion of the PIPE deal, Microsoft spokesman Martin told NewsForge that “Microsoft had no involvement in that matter.”
Our SCO investigation is far from over. It’s nice to see BusinessWeek joining in. We hope other “mainstream” media also start turning their reporting eyes on SCO. As Eric Raymond’s famous saying (almost) goes, “Many eyes make all hidden financial dealings shallow.”
Category:
- Legal