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Yahoo, eBay team up on e-commerce

May 25, 2006

By Margaret Kane

Story last modified Thu May 25 07:30:08 PDT 2006

Yahoo and eBay are teaming up as the Internet search and commerce markets grow even more competitive.

The two companies said Thursday they are forming a multiyear partnership centered on advertising, e-commerce and search. As part of the deal, Yahoo will become the exclusive third-party provider of all graphical ads on eBay and will also provide new text ads on some search results pages, a Yahoo representative said.

Specific financial details were not released, but both companies said that the deal would not be material to 2006 results and that any financial impact for 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. PayPal will also be integrated into product offerings for Yahoo merchants and publishers, including the Yahoo Publisher Network, Yahoo Search Marketing and Yahoo Merchant Solutions.

The two companies will also explore co-developing their respective voice over Internet Protocol (VoIP) services. That project will look at releasing “click-to-call” ad technologies on their Web sites, using both Yahoo Messenger with Voice and eBay’s Skype service.

Yahoo search and site links will be integrated into a co-branded version of the eBay toolbar, the companies said.

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Written by James Opiko · Filed Under E-Biz, Marketing, Marketing Portal Updates, Search Engines 

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