Rumours have erupted on who will actually merge with the Internet auction company Ebay. It has been reported that Microsoft may still be considering a merge with or buyout of Ebay, although official reports and web blogs say otherwise.
On the 25th of May a merge between Ebay and Yahoo was officially announced. News of the merge was not a big surprise as a recent report issued by JP Morgan on large-cap Internet companies merging, with the purpose of gaining a distinct advantage over rivals, claimed a merge between Ebay and Yahoo was 'most strategically feasible'. The report also goes on to state how large companies could benefit by consolidation or merging.
'After detailed analysis, we believe a partnership or strategic event among large-cap Internet companies is likely due to 1) increased scale, 2) strengthened global footprint, 3) broadened user insights, and 4) improved operational efficiencies. We also believe recent share gains and product introductions by Google are compelling other large-cap Internet companies to explore strategic alliances'.
Will this be the way forward for large companies? Will Paypal become Yahoo wallet? We will have to wait and see. The biggest question has to be, will this merge encourage other large Internet companies to do the same?
|
|
Reader Comments: 0
