Why are Yahoo Partnering With Ebay?

According to the 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“.

They make a good match. As the article points out, the core of the deal centers around advertising distribution and, most interestingly, PayPal.

I think Google will certainly consider that partnership a threat, and an opportunity for strategic advantage:

More than one analyst noted, however, that Mr. Schmidt’s denial left a lot of room for a Google service that could cause significant damage to eBay or PayPal, or both….Google Base has the potential to become a significant threat to both PayPal and eBay if Google expands the coverage and features that it offers..

So, not a case of “if”, but a case of “when”….

  1. bilgibilgi03-30-2007

    i agree with this yahoo thinks that enemy of my enemy is my friend . yahoo partnering with microsoft against the firefox which is supported by google and i’m not suprised when i read this . yahoo is afraiding google

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