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  BREAKING LINUX NEWS: Microsoft *Was* Matchmaker Between BayStar & SCO
Time: 12:56 EST/17:56 GMT | News Source: Linux World | Posted By: Brian Kvalheim

BusinessWeek is today confirming the Net rumors that have been circulating alleging that Microsoft helped finance a small Utah software company's three lawsuits - against IBM and two corporations that use Linux, AutoZone and Daimler-Chrysler.

According to the report, written by BWOnline's Jim Kerstetter:

Lawrence Goldfarb, managing partner of BayStar, says that senior executives at the software giant had telephoned him about two months before the investment. Would he be interested in investing in SCO, they asked? Goldfarb wouldn't identify the executives, but says neither Chairman William Gates nor CEO Steve Ballmer were among them. He says Microsoft didn't put any money into BayStar or the SCO investment. A Microsoft spokesman says that the company has no "direct or indirect" financial relations with BayStar, but declined to comment when asked whether execs called BayStar to suggest investing in SCO.

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#1 By 5912 (82.74.70.225) at 3/11/2004 2:05:53 PM
Awwww MS you should have known better. This is a pretty disgusting revelation IMO. Such a dumb move.. :(

#2 By 6859 (206.156.242.36) at 3/11/2004 3:09:55 PM
Maybe since MS suggested Baystar invest in SCO, the real target isn't Linux at all, but rather Baystar itself. Perhaps MS wants Baystar and they needed a way to make Baystar less liquid and less of a difficult takeover...thus the redirection.

Of course it is interesting that one man holds a great deal of stock in MS and Baystar--Paul Allen. So this could be all his doings.

Regarless, who cares if MS is using Baystar to cause problems for another company; it is perfectly legal.

#3 By 5912 (82.74.70.225) at 3/11/2004 3:12:45 PM
#4: as a Dutch citizen I can tell you that I find the Lindows-case absolutely sickening. The idea that I am prohibited by law to access certain websites that are perfectly legal in other countries really makes me angry. However: although I do think that MS is harassing competitors in a very ethicaly questionable way I cannot blame it on them. They are only (mis)using a system of law that is flawed to begin with.

#4 By 5912 (82.74.70.225) at 3/11/2004 3:28:06 PM
#5
About this 'method of competing': I don't care who you are, how much money you have and how 'legal' it is (of which I am not even shure). This kind of practice is EXTREMELY low and condemable and just the thing that I realy, realy HATE about MS. They should concentrate on developing their products instead of trying to manipulate and lie their competitors out of business.

#5 By 143 (68.248.131.157) at 3/11/2004 4:07:33 PM
Politicians they do that "low ball" crap all the time but I don't see DOJ going after them.

That Linux World title is just as misleading as the article writer...hmmmm


This post was edited by donpacman on Thursday, March 11, 2004 at 18:10.

#6 By 3339 (64.160.58.135) at 3/11/2004 7:01:09 PM
Why is "Microsoft WAS Matchmaker" misleading?

Baystar wasn't looking to invest in SCO, didn't even know about it... Microsoft calls and says we think you should invest in SCO (because it looks bad if we do it directly and we know you want our business so we hope you'll do it), Baystar invests in SCO...

That IS matchmaking.


#7 By 3339 (64.160.58.135) at 3/11/2004 8:03:54 PM
stubear, just because you are making a connection between this story and Eric Raymond's personal conclusions doesn't make the headline misleading.

It was news that was broken by BWOnline. That is not misleading.

They titled the story; "Microsoft was the MatchMaker between Baystar and SCO" which is accurate. Not misleading.

They didn't say: "Microsoft was the source of the funding from Baystar in SCO"; they said "Microsoft was the MatchMaker between Baystar and SCO".

Accurate. Not misleading.

I don't see anything in this title alluding to the e-mail which is also genuine. I see that BWOnline accurately characterizes Raymond's own theories while largely cutting him out of the story to AVOID the sensationalism associated with his views. I see that the BWOnline story accurately portrays the involvement of Microsoft. The story and the title are not misleading.

Stuey boy.

This post was edited by sodajerk on Thursday, March 11, 2004 at 20:34.

#8 By 12071 (203.185.215.149) at 3/11/2004 9:48:45 PM
stubear, any ideas on WHY Microsoft (who apparently is not an investor in BayStar) is calling BayStar to give them advice on who they should invest in? Further to that, any ideas on why BayStar is listening to Microsoft on their investment strategy? Is it because Microsoft is a large company? Would they listen if IBM called them and told them to invest in XYZ?

BayStar manages $400 million in funds, most of which are in life sciences, only 27% of that is in software (or at least was last year). Now, after a phone call, BayStar agreed to invest $50 million in SCO, that's 1/8th of their total current investments, hardly pocket change.

BTW, the original news story is here: http://www.businessweek.com/technology/content/mar2004/tc20040311_8915_tc119.htm so this isn't some anti-MS conspiracy, unless of course you believe that anyone that writes anything that could potentially be taken in a negative way is anti-MS and should be outlawed!

#9 By 135 (209.180.28.6) at 3/12/2004 11:07:23 AM
Hmm... The "Linux world" seems to be making a big deal about this, but a point that they fail to realize...

it doesn't matter.

Nobody is going to care about this other than a few rabid anti-Microsoft fanatics, and they hate Microsoft already.

More people need to understand politics.

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