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Microsoft's Ties To SCO Confirmed By Investment Group
BayStar Capital, which invested $50 million in The SCO Group last October, on Thursday confirmed that Microsoft Corp. introduced it to the small software company that has mounted a court challenge to Linux, the open source operating system that has become a strong rival to Windows.
While confirming the introduction, a spokesman for the Larkspur, Calif., investment firm reiterated earlier statements that Microsoft did not invest any money in Lindon, Utah-based, SCO.
"Microsoft did introduce SCO to BayStar as a possible investment opportunity," the spokesman said. "But, and we said this previously, Microsoft neither participated in the SCO investment back in October, nor is Microsoft an investor in BayStar."
The spokesman declined further details, but said it was not unusual for companies to recommend investments in other businesses. BayStar last year funneled a majority of its investments in life sciences, media and high-tech companies.
Speculation that Microsoft was bankrolling SCO surfaced last week when Eric Raymond, president of the Open Source Initiative, published a leaked internal e-mail thread between Chris Sontag, a senior vice president and general manager of SCO's licensing division; and Mike Anderer, chief executive of Salt Lake City-based strategic consulting firm S2.
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