Intensifying speculation over recent indications that eBay is seeking new online alliances, and following closely on the heels of the news that eBay and Yahoo! are to ally a number of critical services across their networks, the New York Post reported Saturday that though talks have slowed, Microsoft has in recent weeks pursued the possibility acquiring eBay outright.
According to the Post, sources say that Microsoft has been in talks to acquire eBay for some time. Though the Yahoo! partnership and antitrust worries are said to be among issues that may have scuttled the deal, according to the Post at least one source claims that Microsoft has not given up on the buy.
While the Post should no doubt be taken with a large grain of salt in this case, what remains clear is that Microsoft would like nothing more than to buttress its increasingly also-ran MSN service with some of the popular features that big boys Yahoo! and Google have, including online shopping and payments clearing services, both of which an eBay purchase could provide.
On the other hand, one can't help but think that an outright acquisition seems unlikely given an eBay market capitalization that is fully a fifth of Microsoft's and the fact that antitrust concerns would likely be a major roadblock. eBay is, after all, no longer just an online auction provider, having its fingers now in the payments and banking, community and bulletin boards, and personal communications pies as well.
Understanding that there is usually some kernel of truth to rumors, what investors can most likely make of the Post story is that eBay's search for partners isn't over. Talks between Microsoft and eBay over strategic alliances probably continue, and if such talks prove fruitful, eBay may soon be adding Microsoft to its list of partners.
Time will tell.
