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Wed May 3 2006 08:30:48

YahooBAY or MicroHoo?

By: Ina Steiner

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Recently the Wall Street Journal reported that eBay was talking to Yahoo and Microsoft "to determine whether one of them might be a worthy ally against a common threat: Google." (April 21). Sramana Mitra had posted on her blog back in September and October that Yahoo should actually acquire eBay ("Google vs eBAY or Google vs YahooBAY?") (link).

Today's Journal now reports that Microsoft may be considering acquiring Yahoo. You need a paid subscription to read the article (link).

If Yahoo has the option of buying eBay or being acquired by Microsoft, which would be more appealing to them? And if Microsoft were to acquire Yahoo, where would that leave eBay?

PS: I wonder if eBay's contentious battle with Alibaba in China has made it more difficult to work with Yahoo, which invested in Alibaba last year.

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