Microsoft is in discussions to acquire the online auctioneer gaint eBay. According to multiple sources close to the matter, Microsoft has considered buying eBay and merging it with its MSN portal the deal that would give MSN and eBay to better take on Google.

Sources indicate that the talks, while still active, have cooled somewhat in the last two weeks as executives considered antitrust issues.

It is still unclear what the full impact of advertising and search alliance between Yahoo! and eBay will be for talks between MSN and eBay.

This deal was considered important for MSN, as it would have resulted in AOL switching from Google's search technology to MSN's technology. MSN is focused on expanding its search engine, which lags behind Google and Yahoo! Google eventually inked a deal with AOL, which included a broad online advertising partnership and an extension of the lucrative search deal.

Related: yahoo and ebay move against google

Source: Microsoft to acquire eBay


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