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Yahoo! and eBay, Sittin’ in a Tree

Written By Reprise Media | May 25, 2006 | Share This |

yahoo ebay alliance.jpg

Maybe now we know why Yahoo! is reportedly ho-humming the idea of an extended search partnership with MySpace. Today, eBay and Yahoo! announced a big, fat, exclusive long term advertising deal that had both companies’ stocks climbing in early trading.

Under the terms of the partnership, Yahoo! will have exclusive third-party rights to serve graphical ads throughout the eBay site, which boasts 200 million users. And Yahoo! will use the online auctioner’s PayPal system to accept payment for the web services available to its own 400 million-strong following.

The firms will also jointly prepare a co-branded eBay toolbar - 4 million have downloaded the current version already - which will integrate Yahoo!’s web search capabilities. Yahoo! and eBay will also “explore” the possibility of developing click-to-call tech for ads, although this probably ranks as the least exciting facet of the deal.

The AP says that the alliance will be in full force sometime in 2007, with the first of the cooperative offerings to test later this year. Kind of a big deal? Mmm yeah, you could say that.

Topics: Yahoo! |

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