Microsoft can either improve MSN to make it more of a real competitor to Google, or it can take a different approach, for example by buying eBay, said Martin Reynolds, an analyst at Gartner. Google is quietly creeping up on Microsoft, and eBay would take Microsoft in a whole new direction.

The latest rumor to sweep the world of high tech claims that Microsoft has its eyes on eBay for a possible buyout. Last week, a report in the New York Post said that Microsoft has engaged in preliminary talks with eBay about acquiring the online auction company and merging it with MSN.
Microsoft and eBay declined to comment. The information out in the public is speculation and the company does not comment on rumors, said an eBay spokesperson. A spokesperson for Microsoft said much the same thing.

But bloggers, industry analysts, and others have been speculating about what a move on Microsofts part might mean.