What If Microsoft Buys eBay?
Posted by Harry McCracken | Tuesday, May 30, 2006 10:31 PM PT
This would seem to fall into the fun-to-speculate-about-but-unlikely-to-happen file:
Rumor is rife on the Web that Microsoft is in talks to buy eBay. Why? Well, to better compete with Google, of course. But once you get past that big idea, it's not easy to figure out how owning eBay would help the Behemoth of Redmond do that.
Okay, it is true that eBay would bring with it one of the biggest, most vibrant, and loyal communities the Web has ever seen. It would also bring PayPal, the only online payment system that ever mattered. (And there still seems to be unlimited potential for PayPal being applied to more and more kinds of transactions.) It would also bring the teeming masses who use Skype...although it remains unclear whether eBay, Microsoft, or anyone else will be able to figure out how to make Skype a cash cow.
But would any of those assets gird Microsoft for the Great Google War? They wouldn't help it come up with a Google-trouncing search engine. (I've been using
Windows Live Search lately, and while it's not without its virtues, it's no Google-killer.) They won't help Microsoft, whose only best-of-breed Web service so far may be
Windows Live Local, build Web apps as clever and elegant as Google's best. (As great as it is, eBay is in many ways an old-fashioned site, one that's cluttered with stuff and not particularly quick to use.) And there's no obvious synergy between Microsoft's major business--the selling of operating systems and applications--and eBay's person-to-person marketplace.
In some ways, the Microsoft-Google war boils down to a single question: Will desktop software paid for by licensing fees be replaced, in part or completely, by Web-hosted services supported by advertising? If the answer is "yes," Microsoft is in for interesting times. But there are probably no easy fixes or silver bullets.
Maybe there's a scenario in which Microsoft gets all those eBay buyers and sellers, PayPal users, and Skybe gabbers to use more and more Microsoft services, which it monetizes through ads, fees, or a combination of both. But buying eBay, which wouldn't come cheap, with such a vision in mind would be...well, visionary. And none of Microsoft's many acquisitions over the years have been particularly visionary.
Sounds EBaytastic.
ms bay WOULD BE A GREAT ENTITY><. It would give ms messenger a great voip magnet with skype built into every windows and ms messenger and hotmail.
It would allow gates to get in on every buy online deal which uses paypal. It combines the big messenger ,voip, buy online and search .As well all these together allows alot of tracking of calls, buying ,emailing and credit info.info is POWER.....
I see opening my homepage and theres my messenger list with emails voip call outs EVERYTHING..My buy onlne of movies pay tv, music, socks even news too.
Power corrupts...and absolute power corrupts absolutely....
...but then, we are talking about Micrsoft. Perhaps redundant there.
If microsoft bought ebay then it would make it a working partner with yahoo, as yahoo just anoused planes to work with ebay. if microsoft did this and could put is gurilla size behind both ebay and yahoo then i think google's days would be numbered.
If Microsoft buys eBay I quit using eBay. Microsoft cannot keep itself from tinkering with a good thing.
"eBay would bring with it one of the biggest, most vibrant, and loyal communities the Web has ever seen"
ebay powerseller here, correction: it would bring the most unloyal and desperate to jump ship communities the web has ever seen. You think it's bad being forced to use microsoft products, try selling online somewhere else after ebay dumps on you for the 20th time in 6 years.
This merger does not make sense to me.
We, the consumer, would suffer greatly from this evil union.
If microsoft buys ebay, apple will by google then.
this would sadly probably make ebay a less shady business
If Microsoft purchased eBay, I would discontinue using it. I do not like how Microsoft continues to monopolize and Bill Gates' keeps reaping the profits.
"Okay, it is true that eBay would bring with it one of the biggest, most vibrant, and loyal communities the Web has ever seen."
....This is NOT true! How out of step is this reporter that wrote this article?
Ebay is definetely benefiting right now from past reputation, but the buyers/sellers loyalty is eroding at an accelerated pace.
Sellers are in the unfortunate position of selling off current stock, and looking for a more secure future away from ebay price gougeing. It may not be apparent as yet to onlookers, but I can assure you ebay is a sinking ship and the current model of chargeing listing fees to post auctions is not unlike the dinosaurs extinction.
If this sale transpires, it is ebay that will get the better deal. Ebay will be elated to sell off this dieing auction format. The only thing that floats ebay is the "sellers money" it is not the buyers money that float ebay. Currently the sellers are being bilked for excessive fees and the only direction this priceing model can go is down the drain.
To buy ebay is alot like buying a used car thinking you got a winner, only to find out it has serious engine/transmission problems. Bill Gates would be a moron to buy this problem site, and bail out ebays poor mismanagement.
Of course the US Government will probably allow this sale to transpire and give one huge monopoly, yet more leverage to control the web ecommerce to the dismay of all affected.