Microsoft in Talks To Acquire Ebay
thatedeguy writes "The NY Post is reporting that Microsoft and Ebay are in talks for the online auction house to join the Microsoft family." That said, the talks aren't going that well at the moment. From the article: " 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."
With MS already in trouble over abuse of market share, I can't see any anti-monopoly commission approving a buyout of this size.
Bidding for Ebay starts at $8 billion, but you can Buy It Now for $12.5 billion.
why would Microsoft want to aquire a whole company when there's nothing eBay can offer that MS can't get by investing a few hundred million in them like they did with apple?
Microsoft, running eBay, PayPal, and Skype.
MS will spend YEARS trying to dump the *nix servers out of Ebay ;-)
Considering that eBay has a market cap that's 20% of Microsoft's, such an acquisition would probably cause a panic among investors and kill the stock. What they're more likely talking about is a partnership/alliance in certain areas.
Help kill corporate productivity!
IMHO this is great news.
1) It gives Google _more_ of an incentive to develop GPay and Googles Ebay (G-Bay?).
2) Now all 3 companies that we love to hate are all in one convient package (Pay-Pal, Ebay, MS)
This is Scary because:
Given the excellent security record that Microsoft OSs' have do we really want pay-pal tied into the OS? OR even worse if Microsoft thinks* you are not using a "Geniune" copy of it's OS, will it put a lock you your paypal account and/or deduct the amount straight from your account.
AND EVEN WORSE: This will make it _very_ easy for MS to start charging $xx/(day/week/month) for using Windows.
OMG the sky is falling! =)
Should make for interesting times.
(The Chinese proverb: "May you live in Interesting Times" is apt I think)
"The price good men pay for indifference to public affairs is to be ruled by evil men." ~Plato (427-347 BC)
I was on the eBay sight this morning and there's a new category labeled "Vaporware". It only had listings for advance purchases of Windows Vista.
It's good to use your head, but not as a battering ram.
I doubt Microsoft is after Ebay itself. I think - for Microsoft - PayPal (owned by Ebay) is the interesting asset here, especially considering their plans for subscription models.
I saw it as "Microsoft in Talks to Acquire Baby"
I need some coffee.
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If Google has only search, and MS can buy all else, then it will be only a matter of time before they own search as well. Keep in mind, that MS is always stronger when it is them vs. 1-2 competitors. When their is real competition, then MS has a very difficult time competiting (such as what Linux and BSD does to them).
With a different admin, I would give MS zero chance of being able to even partner with e-bay, let alone buy them. But this admin does not care about legal or moral issues. I suspect that MS will be able to own e-bay if they do it quickly enough.
I prefer the "u" in honour as it seems to be missing these days.
Microsoft has the habit of 'Microsoftizing' all software and web sites it acquires, where 'Microsoftize' means "make ugly, slow and unusable".
Hotmail, Frontpage and Visio were all excellent, lightweight products until MS added tons of links and toolbars and menus and images and made everything crawl.
Prepare for slower uglier eBay & Paypal.
But this admin does not care about legal or moral issues.
Has there really ever been an administration that did?
How can a post be modded "overrated" or "underrated" when it hasn't been rated yet?
We all remember (don't we) how long it took MS to convert Hotmail?
So either MS runs a Solaris based service for the forseeable future or breaks Ebay for months while they try to get it right.
The thing is, Microsoft always had a "Buy for product, not market share" mentality.
Almost all companies they bought have been startups with a really cool product ( Hilgreave, WebTV, Bungie...). As far as I know, Microsoft has never bought a Novell or a Lotus or a Compaq, they kill competition with hard work and/or unfair practices, but not with company acquisitions.
So when you see Microsoft thinking of buying eBay instead of developing an alternative and slowly increasing their market share( like they did with IE) you know they are very desparate and afraid of Google.
I bet they're just trying to stop the illegal sales of MS Windows on ebay...
Bid Screen of Death.
In the new Vista, after a crash, you have to have the winning bid before getting your crash dump.
Parent poster reminds /. that Microsoft WOULD replace *nix servers at eBay with THEIR
flagship product.
It is not outside the realm of rational thought that Microsoft will be desperate to have
some highly visible enterprise to demonstrate the successful adoption of MS Vista OS,
even if they have to buy the company in order for that to happen. Vista is far behind
schedule, and this only after shedding 90% of the new "gotta-have" features they were
touting. Many, many corporations will be unmoved to migrate to Windows Vista OS
until (1) it is a PROVEN product, and (2) prior MS products reach EOL status.
If Microsoft spends 20% of its' cash reserves to purchase eBay, and then another 20%
to massage a working enterprise IT structure in order to demonstate Vista's viability,
what other choice would they have? Their business plan is dependent upon regularly
scheduled corporate upgrades, including the support contracts and training/certification
treadmill. So long as such a massive acquisition takes place during the current (BushCo)
business climate, they are less likely to get pinged by the DoJ regarding monopoly abuse.
You might say that Microsoft's future business is dependent upon a closing "window of
opportunity" to demonstrate a viable enterprise MS Windows Vista deployment. The
most notable feature of Vista, h/w-s/w DRM with corporate key control, would be an
ideal non-political fit for an enterprise utterly dependent upon e-commerce.
They run mostly Windows 2000.
If Microsoft and eBay are indeed talking, it is proof that Microsoft has way too much money just sitting around. Microsoft will ruin eBay if they were too aquire it. I don't want everything to be either Google this and MSN that.
Later,
-Slashdot Junky
.
Landfill Mining Co.
Managing the (Un)natural Resources of Tomorrow
Show me where in PayPal's user agreement it shows that your money is FDIC insured? Their ridiculous "FDIC passthrough protection" doesn't count because it doesn't protect you in the case of PayPal becoming insolvent, only the bank they invested your money in. Believe me, if PayPal declares bankruptcy you'll be the LAST person with a claim on getting your money out of those bank accounts. Don't be a fool.. if you have more than $50 (or some small amount you're willing to lose) in a PayPal account you're asking for trouble. I even unlinked my checking account from them a few days ago because I am simply not comfortable with such a fucked up company being able to drain any of my "real" money. The only thing I allow as a source of funds now is a credit card so I can fight fraud charges through the CC company. Sure, this mean's I'm "unverified", which is ridiculous since they verified my account via my bank account once, it should stay verified no matter what payment method I choose to use.
Microsoft has a program called SPLA (Software Provider License Agreement) that anybody who is a Microsoft Partner can join (becoming a Partner is basically filling out a form). There's a bunch of legal stuff you have to sign, but then you get access to their entire library, which you can then resell -- of course you're responsible for supporting it, but you pay MS (or one of their major contractors, like Software Spectrum) a fee per month for each piece of software you use. You can sell per-user 'subscriber access licenses' or per-CPU, unlimited-user licenses. The monthly fees you pay MS are pretety reasonable -- instead of buying SQL Server 2005 Standard Edition for $1500, you pay MS $3/mo/user and charge the client whatever you want. A lot of their commonly-used software is under $5/mo., and some of the more esoteric stuff is only a little more.
That fee includes free upgrades, so if I sell you a Windows license at $5/mo., you would automatically get Vista when it comes out. It's actually a very reasonable program, or at least it appears to be.
You know, how they did with HotMail...and then spent years getting it back up to speed?
Blar.
Microsoft makes large "enterprise" software packages. Google makes small tools that will probably never come out of beta. They are 2 different business models. Microsoft is a company lead by someone who really doesn't have a grip on reality. He's egotistic and doesn't like the success that Google is getting however right or wrong that success is and that's another discussion. MSN's search is such a small amount of Microsoft's income that it just doesn't makes sense that he would want to crush a search engine.
Google doesn't make an Operating System. Google doesn't make an office productivity suite. Google doesn't make a game console.
Under Ballmer's lead Microsoft is starting to fall apart. It's losing direction because of obsessions with beating Google for whatever reason. So what if Google has taken some of Microsoft's talent. That's the way it is in business. Particularly when employees smell the rot that is starting to consume Microsoft.
Either rate, Google isn't the needle to Microsoft's balloon, Ballmer's obsession with Google is.
I recall when I used to visit eBay that a lot of the URLs had isapi.dll in them. After a while, I noticed that this had gone and there was a big 'Powered By Sun' logo on the front page. Now this has gone too.
I am TheRaven on Soylent News
I've enjoyed doing business with ebay, but it would be over if there's a buyout.
Microsoft probably would not be able to afford eBay. I'm a shareholder of ebay myself, and the way I see it, I would need either:
$45 per share in cash
or
2.5 MSFT shares per 1 ebay share
Which means Microsoft is either going to have to issue $30 billion in debt and spend all their existing cash, or relinquish 30%+ of the ownership of the combined company to eBay shareholders.
I find it hard to believe they're willing to do either.
Now, if they want to buy Skype from us or something, that's a different matter.
A+++++++++++ Would buy out large web company to protect our monopoly again.
Training monkeys for world domination since 1439
And if MS ran eBay, would there be special features only available to IE users? That would encourage eBay users to use Windoze instead of Apple or Linux.
Skype would be perfect for M$ and the way it does business - foothold in the market, recognized name, closed proprietary soft and protocols...
Wouldn't it be enough of a reason for M$ (I don't quite see how an auction-style site could interest them)