Media Digest (5/27/2011) Reuters, WSJ, NYT, FT, Bloomberg

Google (NASDAQ: GOOG) was sued by PayPal and Ebay (NASDAQ: EBAY) over the use of trade secrets in its new e-commerce payment system. (Reuters)

A power shortage in China may cause the government to tackle inflation more aggressively. (Reuters)

Google launched its new pay-by-phone product. (Reuters)

The Microsoft (NASDAQ: MSFT) board supported CEO Steven Ballmer after an attack by David Einhorn. (Reuters)

Citigroup (NYSE: C) will try to keep $1 billion in assets given to it by Lehman Bros. to support loan obligations. (Reuters)

MGM China posted its $1.5 billion IPO. (Reuters)

Microsoft’s Steve Ballmer attacked the piracy of its software in China. (WSJ)

Pension funds are increasing their investments in hedge funds. (WSJ)

California state officials have begun to examine the proposed AT&T (NYSE: T) buyout of T-Mobile. (WSJ)

Delphi’s IPO signals an improved auto industry. (WSJ)

The number of people who watch traditional TV has dropped in the last two years. (WSJ)

Alibaba’s former unit–Alipay–got a license to operate in China. (WSJ)

An increase in jobless claims indicates that the recovery in the unemployment rate may be stuttering. (WSJ)

Europe could withhold its next payment to Greece because of concerns about the nation’s ability to cut government costs. (WSJ)

A new Abbott (NYSE: ABT) cholesterol drug had early trials halted because it is not effective. (WSJ)

Freescale’s IPO has been hurt by its debt load. (WSJ)

GM (NYSE: GM) plans to issue junk bonds. (WSJ)

Structured loan deals have begun to re-emerge after being washed away in the credit crisis. (WSJ)

Mortgage rates reached a 2011 low. (WSJ)

Howard Stringer’s efforts to turn around Sony (NYSE: SNE) have been spotty. (NYT)

Facebook has developed an easier way for members to share songs. (NYT)

The heads of a number of internet companies said that heavy regulation would undermine free expression. (FT)

Credit default swaps which cover US sovereign paper have doubled in price. (FT)

Japan’s deflation ended after 25 months. (Bloomberg)

Fidelity said it had a bullish view of the dollar. (Bloomberg)

Douglas A. McIntyre