Microsoft has been in talks for several weeks about a possible acquisition of eBay, reported the New York Post on Friday, citing sources close to the issue. Apparently, Microsoft has considered buying eBay and merging it with MSN in a bid to challenge Google for internet supremacy, but as a result of antitrust concerns the talks have "cooled somewhat," according to the Post.

Moreover, last week eBay and Yahoo announced a strategic advertising and e-commerce alliance that may have dampened the talks as well, though one source has suggested the partnership would not necessarily deter Microsoft from going after eBay.

After Google thwarted a Microsoft alliance with AOL, Microsoft has reportedly been in talks with Yahoo as well to form a partnership of sorts to take on Google. But, according to one source cited by the Post, Bill Gates has concluded that Yahoo is more a content than a technology company - and he does not want a content company.