Mergers may be next trend for big Internet companies

MERGERS MAY BE NEXT TREND FOR BIG INTERNET COMPANIES
[SOURCE: Reuters, AUTHOR: Eric Auchard]
Speculation is rife on Wall Street that a big Internet deal or alliance is in the works, with Google, Yahoo, eBay or Microsoft as possible partners -- and a Yahoo-eBay partnership seen as most likely. "A partnership or merger between eBay and Yahoo! is the most strategically feasible," a report authored by analyst Imran Khan and the JP Morgan Internet team said on Monday. "A combined company would have the leading position in auctions, communications, payments, graphical advertising, audience reach, and geographic breadth," the report said. Silicon Valley insiders, high-tech bankers and financial analysts are giving new credence to potential merger deals, which fly in the face of common wisdom that the Internet's rapid growth has always outweighed the logic of consolidation. But Internet growth is slowing and competition among the biggest companies -- Google, Yahoo, eBay and Microsoft -- is intensifying.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID=2006-05-24T160950Z_01_N23175188_RTRUKOC_0_US-INTERNET-MERGERS.xml

** BREAKING NEWS: Yahoo and eBay announced a strategic partnership for Internet searches, advertising, online payments and a co-branded toolbar. **