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Yahoo's Asian partners now compete with eBay and would have to sign on to any deal, or cut their ties. Alibaba.com boasts more than 70 percent of the business-to-business auction market in China, where eBay has struggled to find its footing.
Many analysts said eBay could use a partnership with Yahoo to reenter Japan after a failed attempt in 1999.
Yahoo-eBay War Rages in China [redherring.com]"We need to remember that eBay has lost Japan and Taiwan," he said. "If there’s a perception of them losing China as well, that’s something that they’re not going to stomach."