Ebay & Yahoo internet giants to work together to battle the web's big beast...
eBay and Yahoo! have announced theyare combining efforts and forming a partnership primarily to concentrate on advertising, ecommerce and search capabilities.
The deal, Yahoo!
Yahoo will become the exclusive third-party provider of all graphic ads on eBay and will offer sponsored search for complementary products on eBay search results pages in the US.
Financial details are yet to be released but eBay & Yahoo said the deal would not have any financial impact till 2007 and beyond would be detailed when the companies issue their outlooks for that period.
Yahoo! will make eBay's PayPal service the exclusive third-party provider of its online wallet, allowing customers to pay for Yahoo! services from bank accounts, credit cards or balances associated with their PayPal accounts. The companies plan to begin releasing the new products this year, starting with a several-month-long trial phase, and hope to complete the launch next year.
Yahoo! Terry Semel CEO announced in a statement: "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."
eBay and Yahoo! have seen increasing internet competition in their core markets, mainly from big hitters Google and Microsoft. Google's Base service released for US markets, allows users to post and look for information ranging from property listings to food.
Reports had surfaced earlier this year that eBay was in talks with both Microsoft and Yahoo! to form a partnership to fight off Google.