It seems EBay and Yahoo are pairing up, in what looks a mutually beneficial venture. Certainly if the share prices are to be regarded at least the investors believe so.
Under the terms of the agreement, EBay will incorporate Yahoo into their toolbar which has been downloaded over 4 million times. Further Yahoo will become the sole source for ‘graphical advertising’ on the site and provide some search based advertising. In return Yahoo will use Paypal, Ebays online payment service, as the preferred solution to their storefronts, shopping and subscription services. There is also a likely collaboration into click based advertising using the recently acquired Skype telephony service.
This must be major news for both Google and Microsoft though not entirely unexpected considering the rumours of late in the business sector. The will move will surely prove great business on both parts, but significantly Yahoo with the exclusive advertising. Time will tell but for a deal where it has cost neither financially, this will surely be the start of more cooperation in the future between powerhouses of the net.
