Dot Com War 2.0 — eBay Inc. & Yahoo! Join Forces
The first Dot Com war happened when Microsoft took up Netscape in a browser war that fatally wounded Netscape.
The second Dot Com war may have just been announced on May 25th. eBay and Yahoo have announced a multi-year strategic partnership.
In my two previous posts Why eBay Inc. is worried about Google and Google’s Strategy — anyone? I had explained why Google’s random do-it-all strategy (Search, Portal, Commerce…anything goes) would bother eBay. Google’s Google Base, as I had explained, was a clear sign of bad-times-to come for eBay. Example: On Google Base you will see all sorts of items up for sale from Laptops to Cars to Houses.
The partnership of eBay Inc. (EBAY) and Yahoo Inc. (YHOO) has 5 major areas of cooperation:
- Search — Yahoo provides Search and drives traffic to eBay. Both split revenue.
- Graphical advertising — Yahoo! will become the exclusive third-party provider of all graphical advertisements throughout the eBay.com site
- Online payments — PayPal will become Yahoo!’s exclusive third-party provider for online payments
- Co-branded eBay toolbar — Yahoo! Web search functionality and Yahoo! site links, including the Yahoo! Home Page, Yahoo! Mail and My Yahoo!, will be integrated into a co-branded version of the eBay toolbar
- Explore "click-to-call" functionality — click on an advertisement to directly call the advertiser and pursue a transaction
Extent of Partnership
The eBay Inc. and Yahoo Inc. partnership has 4 aspects. It is a:
- Multi-year strategic partnership
- Designed to mutually benefit both companies
- focused on better serving user, merchant, & advertising communities of both Yahoo! and eBay
- Presently only for US
Most financial and media analysts expect that it could extend to become a global alliance between eBay Inc. and Yahoo Inc. Local alliances already exist. Yahoo India Shopping for example already has an alliance with eBay India.
To Continue…
- Yahoo Inc. & eBay Inc. Alliance — How will Google, AOL, & MSN Respond
- Dot Com War 2.0 - Is Yahoo & eBay partnership a Google buster?
- Yahoo Inc. & eBay Inc. Strategic Partnership Details
POSTED IN: Google, Management, Marketing, Strategy
5 opinions for Dot Com War 2.0 — eBay Inc. & Yahoo! Join Forces
TheBizofCoding
May 26, 2006 at 4:06 am
In my previous post Dot Com War 2.0 — eBay Inc. & Yahoo! join forces I had referred to Yahoo’s (YHOO) and eBay’s (EBAY) joining forces as the precursor for Dot Com War 2.0. The 3 key players are Yahoo, Google,…
TheBizofCoding
May 26, 2006 at 4:56 am
This post is a continuation of my previous 2 posts: Yahoo Inc. & eBay Inc. Alliance — How will Google, AOL, & MSN respond Dot Com War 2.0 — eBay Inc. & Yahoo! Join Forces Most media and financial analysts…
TheBizofCoding
May 30, 2006 at 4:22 am
This post is the concluding post in my analysis & critique of Google’s Strategy. I had written 2 posts earlier which were: Google’s Strategy Anyone? and Why eBay Inc. is worried about Google In my first post Google’s Strategy Anyone?…
TheBizofCoding
Jul 7, 2006 at 7:24 am
eBay (EBAY) Inc. had enough of playing the nice guy and double guessing Google’s infamous Don’t Be Evil motto. Having watched Google (GOOG) – one of its key advertisers — build competitive products in (1) Google Base and (2) Googl…
TheBizofCoding
Jun 14, 2007 at 6:39 am
I have said it before and I say it again. Google cannot use its might in Search to mess with other online players. When Google launched Checkout I predicted trust issues in my posts Flaws in Google's Strategy and Why eBay…
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