Why is eBay partnering with Yahoo?
Published June 1st, 2006
Guardian
Because both are scared of Google, which not only dominates search, but is launching a payments system and plans to take over the world’s classified advertising. At the moment, however, Yahoo has the web’s most trafficked portal, and eBay is the major power in e-commerce, so each has something the other values. Better still, there are hardly any areas where the two compete, so no divisions have to be sacrificed for the greater good.In the “strategic partnership” announced last week, Yahoo and eBay say the four major components are: search and graphical advertising; online payments; a co-branded toolbar; and the opportunity to explore “click-to-call” functionality using eBay’s Skype internet-based voice telephony service.But the core of the deal is eBay will allow Yahoo to sell banner ads and contextual search ads on eBay pages in the US (and share the money), while Yahoo will adopt eBay’s PayPal system for making payments.
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