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SCO Denies Report Microsoft Funneled $82M Into War Chest

The SCO Group is officially denying a published report that claims Microsoft funneled more than $82 million and possibly up to $106 million into the embattled Unix company to help it fight IBM and Linux.

The report, dubbed Halloween X: Follow The Money and published Wednesday by Open Source Initiative President Eric Raymond, is based on a leaked internal SCO e-mail thread between SCO's senior vice president and general manager of SCO's SCOsource Division, Chris Sontag, and Mike Anderer, CEO of a Salt Lake City-based strategic consulting firm called S2.

In the e-mail exchange dated Sunday, Oct. 12, 2003--just days before BayStar Capital's $50 million investment in The SCO Group--Anderer offhandedly claims in that e-mail that Microsoft has given SCO more than $82 million through various investment vehicles and is willing to put up more.

SCO signed a contract with S2 in July of 2003.

On Thursday, a SCO spokesman confirmed the authenticity of the e-mail thread but he claimed Anderer was misinformed and was told so at the time of the e-mail exchange. The spokesman also claimed that Eric Raymond's interpretations of that e-mail--superimposed on the e-mail thread and posted on his web site--was a misinterpretation.

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