Around 2000 or so Microsoft had a Windows Media Player binary for Linux and other Unix systems (Solaris, and HP/UX at least). It used to crash a lot but could play some .asf files. If I am not mistaken it was a Motif application.
But MPlayer was released at around that time and it was much better. I don't think anyone actually used WMP for anything and it was discontinued.
This was back when Real.com was THE media juggernaut and Microsoft was trying to catch up. Real had Linux binaries so I think they were just copying the formula.
(Yes, it was called Windows Media Player even under Linux).
For what it is worth, the "Halloween document" produced by Microsoft in 1998 claims that Microsoft was distributing a Netmeeting client on Linux. Netmeeting is "videoconferencing" software.
As for Torvalds' reaction? See http://arstechnica.com/microsoft/news/2009/07/linus-torvalds... for his thoughts (the original source is behind a paywall or else I'd link to it).