Microsoft buying eBay would be a stupid mistake

If this did happen I would be disappointed with eBay and WHY THE HELL WOULD MICROSOFT WANT EBAY. they need to focus on their current software problems such as why does firefox run better on LongHorn (Vista) than IE does? Or How about they are getting OWNED by Google.

I can see no real "value added" gain for Microsoft by them making purchase of eBay, at least not in the short term. Ebay is a hotbed of controversy right now and surely eBay's overall health is threatened.

What does whisper in my ear about this is the Skype possibility. While the Skype purchase by eBay was a questionable venture at the start, one must stop to consider the realities of the overall picture. Skype is growing and very well accepted. It's leading edge technology. They have some technical issues to deal with as you're hearing about, but those can be fixed in world class fashion. Let's see if they figure out how. I'm not going to tell them what the fixes are unless they pay me VERY well.

So, my point is, could it be that Mr. Gates is not so interested in the auction platform as he is interested in Skype itself? The guy just bought a newspaper. What's he got up his sleeve? Take a look at Microsoft's target demographic... that should give some clues. Do a review of recent acquisitions. You just might be able to develop a facsimile of their roadmap.

Historically, Microsoft has made it clear that they won't show us much until they plunk it down in front of us. You're going to have to dig deep. You're going to have to make some speculations also. If you're really good you'll find the thread to pull.

Let us know when you find it!

Gary

Skype bites, Gizmo Project rules! I think Skype will go down as one of the worst business decisions by a company. If Microsoft were to buy them they should wait till next year to get it on the cheap.

I can't believe that Microsoft would want to throw money at eBay. It could set up a rival and people would flock to it at the moment, no need to buy anything. If Ebay is hoping that this is going to be their salvation I hope Bill and Meg aren't holding their breath. ( no, perhaps if they did it might solve some problems )

The Skype aquisition was a bad joke. Its now been banned for use on college campuses because it "minimizes the network's capacity and also gives hackers a way to get access to university servers."

Great advert.

Regarding Microsoft, I don't think for one moment Bill Gates would have the stupidity to buy a duff car (Ebay) without checking the engine for oil leaks. And there are plenty of them on Ebay. imho, the microsoft/ebay publicity has been cooked up as another way of Ebay saying 'buy me' to other possible candidates. Either way, it does seem like Ebay are grasping at straws at present.

All I know is my stock went from the high 40's to now tinkering in the $26-$27 range, all plummeting from the beginning of this year, where every day people were reporting problems with finding merchandise and general search problems from Q2 til even now. I wondered back then in March why a company would neglect such a crucial element of the ebay experience. If eBay gets a US takeover, then i suppose we'll all know why. Are they driving their stock down?

Do we actually know that Microsoft has shown any real interest in Ebay. For all we know, one of Ebay's "reimbursed" newsie is helping Ebay with still more spin. Can't see what Microsoft could possibly gain from buying a company with the terrible reputation that Ebay now has. Suspicious, you bet I am.

Seems like Skype are experiencing more problems.

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-28T085441Z_01_L28544818_RTRIDST_0_TECH-SKYPE-ZENNSTROM.XML&rpc=66&type=qcna

With regards to Microsoft buying Ebay...why??? A more convincing 'rumor' could have been circulated. Where's your imagination Ebay?

I am one of the many store owners who are upset with E and I have moved a lot of my items into ecrater.com and google base. The controversial rate hike came at the worst possible time 'Big shopping season' at least for me and my estate collectibles.
I can't see why Microsoft would want ebay at this particular time unless it's because of the LOW price. I can see why it would want Yahoo. INFO
Google should take ebay and gates take Yahoo. But, that is just my opinion and I could be wrong.

Actually Microsoft buying eBay would make perfect sense on many fronts if you drop your emotions for a second.

Let's look at the 3 business units of eBay.

1) eBay.com: Microsoft is in fact in the business of marketplaces and Windows Marketplace is clearly not going to catch up so MS could buy marketshare with this. eBay core would be nice. Microsoft can tie in tools directly into eBay from the desktop and corner many markets.

2) PayPal. As it reinvents itself, if it does it properly it can even become a financial threat to the traditional financial industry itself. Microsoft would again be buying Marketshare.

3) Skype. Blah blah... marketshare... ad revenues. Oh no a college banned skype? Theres a fix.

Finally, for those that state... 'oh I'm pissed at eBay for raising rates etc.' and 'users are leaving eBay in droves'... the fact of the matter is (and please feel free to look). The number of users and the number of items for sales CONTINUES to grow on eBay inspite of all this. It is just posturing to other sellers. As someone who buys and sells around eBay, this one left me giggling a lot of the time.

So, I think in a world of Microsft vs. Google that is now upon us... it makes a world of sense for Microsoft to buy eBay.

It would become a category killer move on many fronts and google would be making motor-boat movements with their lips.

Re: Google... btw... is it me or do I get better search results from other places? I always find they are loaded with crap and duplicates up front. No, I'm not a google hater but I've seen a real trend lately and I find myself reaching for other engines first. If you haven't done it in awhile... do a side by side search with 3 or 4 others and compare. I think Google might nose dive like Alta Vista once did if they don't smarten up. The interface is tight, but the results are too loose.

This is a heated argument no doubt. We hinted on the rumor yesterday and have posted 5 reasons why it would not be a stupid mistake. Actually it reads "5 Top Reasons Why Microsoft Should Buy eBay".

Home Page Link: http://www.eauctionmasters.net (1st Post Today)

Story Link: http://www.eauctionmasters.net/home_page_stories/september2006/9_29_06_5_reasons_microsoft_should_buy_ebay.htm

Sincerely,

eAM

Yes, eBay listings are on the increase, so are listings on every other auction site.

Is this because of some new wave of sudden interest in online auctions?

No it certainly isn't, why would it be?
Xmas won't start to boost sales until late October.

Is this because of reduced Shops visibility?

Yes it is.

The now invisible eBay Shops are trying to get the missing visitors back into their shops. They have been FORCED to bulk list on the Core auctions, as well as branching out and selling on other sites.

In other words eBay have used underhand tactics to manipulate the core auction figures, it will be short lived & time will tell the true tale.

By reducing shops visibility & increasing Gallery, Listing & Final Value fees Shops subscribers have had little choice but to increase auction listings or go bust.

The success of eBay entirely depends on its sellers, Without them there is no eBay.

The Shop sellers have seen sales plummit with reduced visibility, does anyone really beleive that they will all just go away without a fight, is anyone that dim?

If Core auctions do not grab the interest of the buyers then the whole concept of eBay Shops will fail & thousands more sellers will leave eBay for good.

Some less desireable sellers will rub their hands in glee as their competition fade away. So what will then become of eBay?

It will become less competative, there will be less choice, the price of goods will go back up & so there will be less buyers. eBay will shrink & so will its share price.

Only after the sellers have tested the water to see if auctions will drive the buyers into the ebay Shops will there be a true picture of the health of eBay.

If Auctions do not drive customers into eBay shops then eBay will lose a third of it's income as Shop sellers finally do shut-up shop.

So what if listings are up, it's a short term ploy engineered by eBay to make it seem that they have regained the sparkle.

Truth is, the sparkle's gone, it's never coming back.

Fraud is the future of eBay as eBay can't be bothered to police its own creation, instead it relies on its users to report criminal activity.

Before long eBay will have forced all the genuine sellers to rival sites & all you'll find on ebay will be fakes, scammers, eBooks & a gaping hole in your wallet with nothing to show for it.

So enjoy your brief moment of glory shareholders, Keep listening to the rumours, pull the wool back over your eyes and keep repeating the words "The future's bright, the future's eBay"

99% of these negative posts are from whining ebay sellers. Q4 will be judgement day. I can't wait. Yes I acknowledge that ebay has problems but you sellers sole purpose in life is to spew your bitterness. If you don't like ebay then move on. It's no different when a landlord raises rent and if you can't afford it find another place. If infact there is a antiebay site where they list their own auction. Go and use it for goodness sake. It's a business. Decisions are made all the time in the business world where there are winners and losers. Ebay is not a charity nor a church party.

Microsoft should buy Ebay today:

1) it is cheap now
2) it has excellent cash flow
3) it is Google's main customer. Switching most of it ADS on MSN would be a blow on Google's cash flow and on its ability to invest on its MS Office killers
4) Paypal and Windows could change the way we pay things in the world. Just a imagine a pay system on every PC... We could pay each others directly from the operating system. MS could sell its licences on a pay per use base (a cent trough Paypal everytime I open a program or similar stuff)
5) Skype on every PC would also change the way we communicate and turn every PC in a 0 cost phone. Not to say how interesting it would be to add the user base and the technology of MS messenger to Skype...

I just gave hints, Maybe some of those activities would not be allowed by antitrust, but really to Add paying, telking and auctioning features to word's operating system would make a lot of sense.

Link Moved:

http://www.eauctionmasters.net/home_page_stories/september2006/92906_5_reasons_microsoft_should_buy_ebay.htm