To: Bill Harmond who wrote (96435 ) 3/14/2000 8:05:00 PM From: H James Morris Respond to of 164684
> EBAY HAS ALSO CONSIDERED some sort of deeper partnership with AOL, with which it already has a broad marketing alliance. Nevertheless, one person with knowledge of the situation says there is a 50-50 chance of some form of ?deep partnership? between Yahoo and eBay being struck within the next few weeks. This person says there is also a significantly smaller chance the talks will lead to a full-fledged acquisition of eBay by Yahoo. Yahoo and eBay have had on and off conversations about various forms of partnerships before, with nothing coming of them. eBayYahoo ? Company Report ? Quarterly Earnings ? Earnings Estimates ? Analyst Ratings ? Company Info But people with knowledge of the matter say conversations have intensified over the last month on the heels of AOL?s acquisition of Time Warner. In the wake of that deal, Yahoo is understood to be feeling pressure to make a significant move that would cement its position as a leader in either Internet content, Internet commerce, or both. Yahoo has previously been reported by other sources to have had partnership talks with Rupert Murdoch?s News Corp. about a content alliance. Conversations between eBay and Yahoo have been rumored ? though not confirmed ? for several days, leading to a dramatic run-up in eBay?s stock price in the last two days, though eBay lost most of today?s gains late in the trading session amid a broader Nasdaq sell off. LARGEST NET MERGER A merger, were it to happen, would represent the largest combination ever of two pure-play Internet companies. For Yahoo, which has struggled with a failed auction business of its own, a merger with eBay would instantly make it the undisputed leader not just in that category, but also in online commerce generally ? an area it is has said it wants to emphasize. For eBay, which is in the midst of an expansion in Europe and Japan, a partnership with Yahoo would dramatically accelerate its international rollout, while taking its domestic dominance to a whole new level in terms of audience reach.