From: Randy 

/m wrote:
> http://www.nypost.com/business/64226.htm
>
> ===
> May 26, 2006 -- For several weeks Microsoft has been in discussions
> about a possible acquisition of online auctioneer eBay, The Post has
> learned.
>
> According to multiple sources close to the matter, Microsoft has
> considered buying eBay and merging it with its MSN portal - a deal that
> would give MSN and eBay considerable clout to take on Google.
>
> Sources indicate that the talks, while still active, have cooled
> somewhat in the last two weeks as executives considered antitrust
> issues.
>
> It is unclear what the full impact of yesterday's advertising and search
> alliance between Yahoo! and eBay will be for talks between MSN and eBay.
> One source close to the matter suggested the Yahoo-eBay tie-up would not
> stop Microsoft from pursuing the online auctioneer.
>
> Last year Microsoft was close to a deal with Time Warner that would have
> combined America Online and MSN. But Microsoft eventually lost out to
> Google.
>
> The potential deal was considered important for MSN, as it would have
> resulted in AOL switching from Google's search technology to MSN's
> technology.
>
> MSN is focused on expanding its search engine, which lags behind Google
> and Yahoo! Google eventually inked a deal with AOL, which included a
> broad online advertising partnership and an extension of the lucrative
> search deal. Google also invested $1 billion for a 5 percent stake in
> AOL.
>
> But Microsoft had been in talks with AOL over a much broader deal, and
> at times the two companies had considered merging AOL and MSN in to a
> 50-50 joint venture.
>
> But once the AOL deal fell apart, Microsoft turned to both Yahoo! and
> eBay for possible tie-ups that would help it compete with Google.
>
> Sources said that talks with eBay were put on Microsoft's front-burner
> only recently, while the Yahoo! talks simmered.
>
> One source said Microsoft boss Bill Gates came to the conclusion that
> Yahoo! was more a content company than a tech company. This source said
> Gates has no interest in owning a content company.
> ===
>
> MS probably wants eBay's PayPal service to prop up MS's failed Passport.
>
>   /m

Microsoft tried once before to get into the payments business with First
Data - it was originally called MSFDC, then Transpoint, and was eventually
sold off to Checkfree-neither side had what it took.

EBAY's market cap is $48B-how much cash is MSFT sitting on?

Besides, with the current set of yahoos in the FTC and the DOJ, they'd let
this acquisition sail through with probably not a care in the world.

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