Microsoft to buy eBay?

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.

NYPost - Talks cool between Microsoft and eBay

Is an eBay-MSN merger a good idea? In a word, no. It’s a bold idea, certainly, one that illustrates Microsoft’s seriousness about making MSN more than an also-ran. But eBay doesn’t need a portal draped on top of it, especially the third-ranked portal, and owning eBay won’t save MSN.

The most complementary assets Microsoft would gain in such a merger would be PayPal and Skype. Alas, unless the company intends to spin-off eBay’s marketplace business, this seems an awfully expensive way to get them.

Internet Outsider - Microsoft to Buy eBay? Bold… But Futile