
-----------------------------------
aiolos
Sat 27 May, 2006

micros0ft in discussions with ebay !
-----------------------------------
From the new york post <b style="color:#FFA34F"></b>:<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
For several weeks Microsoft has been in discussions about a possible acquisition of online auctioneer eBay,<b style="color:#FFA34F"></b> The Post has learned.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
According to multiple sources close to the matter,<b style="color:#FFA34F"></b> Microsoft has considered buying eBay and merging it with its MSN portal <b style="color:#FFA34F"></b>-<b style="color:#FFA34F"></b> a deal that would give MSN and eBay considerable clout to take on Google.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
Sources indicate that the talks,<b style="color:#FFA34F"></b> while still active,<b style="color:#FFA34F"></b> have cooled somewhat in the last two weeks as executives considered antitrust issues.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
It is unclear what the full impact of yesterday's advertising and search alliance between Yahoo!<b style="color:#FFA34F"></b> and eBay will be for talks between MSN and eBay.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
One source close to the matter suggested the Yahoo-eBay tie-up would not stop Microsoft from pursuing the online auctioneer.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
Last year Microsoft was close to a deal with Time Warner that would have combined America Online and MSN.<b style="color:#FFA34F"></b> But Microsoft eventually lost out to Google.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
The potential deal was considered important for MSN,<b style="color:#FFA34F"></b> as it would have resulted in AOL switching from Google's search technology to MSN's technology.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
MSN is focused on expanding its search engine,<b style="color:#FFA34F"></b> which lags behind Google and Yahoo!<b style="color:#FFA34F"></b> Google eventually inked a deal with AOL,<b style="color:#FFA34F"></b> which included a broad online advertising partnership and an extension of the lucrative search deal.<b style="color:#FFA34F"></b> Google also invested <b style="color:#FFA34F"></b>$1 billion for a 5 percent stake in AOL.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
But Microsoft had been in talks with AOL over a much broader deal,<b style="color:#FFA34F"></b> and at times the two companies had considered merging AOL and MSN in to a 50-50 joint venture.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
But once the AOL deal fell apart,<b style="color:#FFA34F"></b> Microsoft turned to both Yahoo!<b style="color:#FFA34F"></b> and eBay for possible tie-ups that would help it compete with Google.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
Sources said that talks with eBay were put on Microsoft's front-burner only recently,<b style="color:#FFA34F"></b> while the Yahoo!<b style="color:#FFA34F"></b> talks simmered.<b style="color:#FFA34F"></b> <b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
<b style="color:#FFA34F"></b><b style="color:#FFA34F"></b>
One source said Microsoft boss Bill Gates came to the conclusion that Yahoo!<b style="color:#FFA34F"></b> was more a content company than a tech company.<b style="color:#FFA34F"></b> This source said Gates has no interest in owning a content company.<b style="color:#FFA34F"></b>
