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Yahoo! and eBay Form Strategic Partnership

PayPal, auction and search mash-up

     
12:22 pm on May 25, 2006 (gmt 0)

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Yahoo! Inc. (Nasdaq:YHOO) and eBay Inc. (Nasdaq:EBAY) today announced a multi-year strategic partnership designed to mutually benefit both companies by better serving their user, merchant, and advertising communities in the U.S. The agreement consists of four major components in the areas of search and graphical advertising, online payments, a co-branded toolbar, and the opportunity to explore "click-to-call" functionality.

"Our consumers will benefit from the combination of Yahoo! and eBay's leading technology and services, providing them with one of the best online experiences," said Terry Semel, chairman and chief executive officer, Yahoo! Inc. "Yahoo! holds a leadership position in all forms of online advertising. This partnership with eBay provides us with a great opportunity to further extend our sponsored search and graphical advertising reach to one of the largest and most active communities on the Web."

It's big and we've been waiting for it. eBay has been flirting with Yahoo! for a long time.

[yhoo.client.shareholder.com...]

<Edit>Added Press Release link - now online</Edit>

[edited by: trillianjedi at 1:14 pm (utc) on May 25, 2006]

12:43 pm on May 25, 2006 (gmt 0)

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The Press Release still appears not to be online, but the story itself is starting to break:

Yahoo to be exclusive provider of ads on eBay site, while eBay's PayPal service to be exclusive provider for Yahoo's online wallet.

[money.cnn.com...]

12:52 pm on May 25, 2006 (gmt 0)

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Yahoo, eBay form Web advertising alliance
[biz.yahoo.com...]
1:03 pm on May 25, 2006 (gmt 0)

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Starting to trickle into the finance publications now too:-

Shares of Internet media company Yahoo Inc. rose 3.7 percent and online auctioneer eBay extended early gains, advancing more than 6 percent before the opening bell on Thursday after the companies said they reached a multiyear advertising and commercial partnership.

Google is down 1.2%

From Reuters - Link [today.reuters.com]

3:18 pm on May 25, 2006 (gmt 0)

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I donít know whatís up but I see billboards of yahoo services in our city(western part of India - Ahmedabad). This is never before approach also.
3:25 pm on May 25, 2006 (gmt 0)

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Maybe Yahoo! and eBay are going to capitalize on the Big Daddy update and get a little more marketshare? Some Webmaster love?

It's a big move for sure.

3:50 pm on May 25, 2006 (gmt 0)

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Interesting, considering that I openned an ebay store recently, I love it.
3:58 pm on May 25, 2006 (gmt 0)

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Well I figure this will be the death of yahoo search if ebay garbage takes over the serps I'm pretty much done there
4:55 pm on May 25, 2006 (gmt 0)

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I wonder how skype will play into all of this. With the lawsuit and all, there traffic has jumped through the roof. Check out the alexa graphs.
1:02 am on May 27, 2006 (gmt 0)

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This seems like a big news headline for something that doesn't really mean all that much.