Wall Street is apparently abuzz about a huge potential internet alliance - most likely a Yahoo-eBay partnership - but also possibly involving others, including Google and Microsoft, writes the New Zealand Herald, citing a JP Morgan report. According to eBay spokesman Hani Durzy, the company works closely with the major search providers, but he would not address a potential Yahoo relationship. "We don't comment on rumors and speculation," Durzy is quoted as saying.

"A partnership or merger between eBay and Yahoo is the most strategically feasible," according to a report by JP Morgan internet analyst Imran Khan. "A combined company would have the leading position in auctions, communications, payments, graphical advertising, audience reach, and geographic breadth."

At a time when internet growth has begun to slow a bit and competition is heating up, potential merger deals have become conceivable. Last week, Yahoo CEO Terry Semel confirmed that the company had been approached by Microsoft to buy a piece of Yahoo's search business, but he ruled out such a deal.