A story about how Microsoft might have been thinking of buying eBay, from the most trustful of sources..you know, New York Post. It says that for several weeks Microsoft has been in discussions about a possible acquisition of online auctioneer eBay, but eBay-Yahoo tie-up and the obvious anti-trust issues have led to some cooling of those talks.
Then WSJ says that there’s more such deal scrambing ahead: The Yahoo-eBay deal could pull Microsoft’s top management deeper into the problem of how to compete with Google and better capitalize on the growth of online advertising. Microsoft is now picking around the edges for partners that can direct traffic to its services and display Internet ads it brokers. Potential partners could include MySpace and FaceBook, a site used by millions of college students. Microsoft could also tighten an existing link with Amazon.com.
Meanwhile TheDeal says that it is time to spin-off MSN. “Even if Microsoft outlasts its competitors, however, can it grow? Ultimately, the truest test of its commitment will be gauged by its willingness to spin MSN out as an independent company. Alternatively, it could sell the unit to Yahoo and take a sizable equity stake in the combined company. Whichever path it chooses, to release its Internet beast, Microsoft may need to unleash it.”
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