Microsoft and eBay Swap Exposure for an Endorsement

Microsoft(MSFT Quote) and eBay(Ebay Quote) Monday announced a far-reaching partnership that gives Redmond an important endorsement and gives the auction site new outlets for its listings.

Starting later this year, Microsoft will offer eBay auctions on many Web sites, including MSN, and through different devices, such as Palm Pilots and cell phones. In exchange, eBay will adopt some of Microsoft's .Net technologies and is buying Windows 2000 server software.

Both companies have incentive to prop each other up. Ebay, though faring better than its tech brethren, faces a slowdown in the auction market and concerns that its valuation is too high. Microsoft needs support for .Net, its loosely defined strategy to offer software and services over the Internet. The program is key to the company's future as the PC market continues to shrink. ...