rumor: ebay being acquired by yhoo

January 10, 2008

The Wall St. Buzz is that msft and yhoo are bidding for eBay. My source tells me that Yahoo! Has bid 1.76 shares for ebay ($40-41) and is expected to win at that price.

Looks like yBay!, eHoo! Could happen in 08!

**Update: Several people have emailed saying the economics don’t make sense because ebay has a larger market cap ($41b) than Yahoo! ($46b) so the acquisition should be other way or it will be massively dilutive for Y! shareholders (thus the 1.76 y/e shares).

I agree that it may not make sense, but I’ve heard it from a pretty good source so wanted to alert folks that at least it’s out there making the rounds, no matter how unlikely.