October 8th, 2008
Microsoft shows interest in WaMu bankruptcy over software agreements
When Microsoft filed a “notice of appearance” in the Washington Mutual bankruptcy proceedings - which is basically a request to be kept updated on developments of the case - and then initially declined to comment about its interest in the case, the speculation began. (Silicon Alley Insider wondered if Microsoft might be interested in Washington Mutual Tower, prime skyscraper real estate in Seattle’s skyline.)
But, alas, Microsoft says its interest lies in existing contracts for software licenses and consulting services with WaMu. Clearly, Microsoft wants to make sure that those contracts are part of the bankruptcy proceedings. Seattle Times technology reporter Benjamin J. Romano quoted a source as saying that the two signed an enterprise software agreement worth nearly $40 million in 2007 to be paid over three years. The Times’ source also notes that WaMu and Microsoft worked closely on new technologies and that some intellectual property could also be in play.
Considering how many financial institutions are using large-scale enterprise software and services - and that Washington says that relief from the economic rescue bill (also known as the bailout bill) won’t be immediate - it could be just a matter of time before we hear about more of these types of legal filings by tech companies.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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