BayStar, Goldfarb testifies, dumped SCO because its stock price, financial performance and the viability of its UNIX products all appeared to be in decline, and he "was also very concerned about SCO's high cash burn rate." Pure financial animals get nervous when that happens. But the kicker was he began to realize that Microsoft, whose senior VP of corporate development and strategy had promised that Microsoft would in some way guarantee the SCO investment, started showing signs it might not do that after all:

"Mr. Emerson and I discussed a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment.... Microsoft assured me that it would in some way guarantee BayStar's investment in SCO."

Gota give Microsoft credit here. In a posistion where they can't finance in SCO directly because the Feds are watching them, they talk another company into doing it. And them save themselves the actual expense by stabbing that company in the back.

As for Baystar, another executive that passed the sea cucumber test. Really, what degree of brain damage is required for that to seem like a good idea without a signed contract from MS first?