May 25, 2006 2:19 PM PDT

Yahoo-eBay deal a Google buster?

SANTA CLARA, Calif.--Yahoo and eBay are gunning for Google, whether they'll admit to it or not.

The two companies unveiled a partnership Thursday morning that could bring more advertising revenue to Yahoo, whose market share losses to Google brought angry words from shareholders at the portal giant's annual stockholder meeting later in the day.

eBay approached Yahoo to discuss working together more closely on advertising, said Yahoo Chief Executive Terry Semel. But the multiyear partnership centered on advertising, e-commerce and search will benefit both companies, he told CNET News.com following the shareholder meeting.

"The deal offers great opportunities for both companies to share great assets with each other," Semel said. "It's all about creating more value and a better experience for users as well as for advertisers."

Neither Yahoo executives nor shareholders mentioned the deal at the meeting, but several shareholders complained that Yahoo hasn't done enough to compete.

"We think the Internet is still in the very early days...We have a leadership position in a number of the most heavily used things on the Internet."
--Terry Semel, CEO, Yahoo

"It seems like you're being outsmarted by a couple of Stanford dropouts at Google," Edward Abramczyk said in addressing Yahoo's management.

"Google's business has boomed. We lost billions of dollars in revenue to Google and others," said another shareholder.

Semel reminded shareholders that although search advertising is the leading way to make money, Yahoo is ahead of its rivals in providing services, such as e-mail, instant messaging, news and music, which people spend more time using.

"We think the Internet is still in the very early days," he said. "We have a leadership position in a number of the most heavily used things on the Internet."

As previously reported, under the deal with eBay, 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. Yahoo search and site links will be integrated into a co-branded version of the eBay toolbar.

Meanwhile, eBay's PayPal service will be the online payment method used by Yahoo customers, merchants and publishers and will be integrated into product offerings. 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.

"It's a unique partnership. It's the first time we've gone off (our) network with graphical ads" said Yahoo Chief Operating Officer Dan Rosensweig. eBay is a "huge, fertile, relevant environment" for advertisers.

Specific financial details were not released, but both companies said 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 those periods.

CONTINUED: Increasing competition…
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5 comments

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Great, Big Brother is getting Bigger & Bigger :(
Great, not :(
So now when people search for something on Yahoo beside being given biased information, that is biased to the 100s of businesses that Yahoo is in from on-line dating, to car sales, to travel, etc. etc., they will also be given further biased information, biased toward the 10's of Thousands of things that eBay is selling.
Talk about Big Brother taking control of what you see/buy through the Internet.
Of course when you consider that Google is doing the same, then makes one rather very depressed
as how few Giant US media conglomerates are taking over the world. To be exact setting up a great barrier to doing business online by more and more tilting the playing ground to the advantage of 100s of businesses that they are in, either by themselves or partners.

Is there no hope? This time there is hope, there is a search engine called AnooX which is Not-For-Profit and it's search results are better too due to being Democratically generated on an Open basis.
You can find them here:
www.anoox.com

So use Google & Yahoo if you want to make their share holders richer, or use & support AnooX,
if you want to make your/our share holders richer, because AnooX is Not-For-Profit.
Posted by kathy_torez (26 comments )
Reply Link Flag
Not For Profit Today
... For Profit the minute they become a big player. Just like Open Source, as soon as an Open Source package gains momentum all the "service providers" come out of the woodwork offering support, upgrades, etc. to the point where you could have bought a commercial package for the same price.

Everyone is in this for money. Period.
Posted by rstinnett (41 comments )
Link Flag
Great, Big Brother is getting Bigger & Bigger :(
Great, not :(
So now when people search for something on Yahoo beside being given biased information, that is biased to the 100s of businesses that Yahoo is in from on-line dating, to car sales, to travel, etc. etc., they will also be given further biased information, biased toward the 10's of Thousands of things that eBay is selling.
Talk about Big Brother taking control of what you see/buy through the Internet.
Of course when you consider that Google is doing the same, then makes one rather very depressed
as how few Giant US media conglomerates are taking over the world. To be exact setting up a great barrier to doing business online by more and more tilting the playing ground to the advantage of 100s of businesses that they are in, either by themselves or partners.

Is there no hope? This time there is hope, there is a search engine called AnooX which is Not-For-Profit and it's search results are better too due to being Democratically generated on an Open basis.
You can find them here:
www.anoox.com

So use Google & Yahoo if you want to make their share holders richer, or use & support AnooX,
if you want to make your/our share holders richer, because AnooX is Not-For-Profit.
Posted by kathy_torez (26 comments )
Reply Link Flag
Not For Profit Today
... For Profit the minute they become a big player. Just like Open Source, as soon as an Open Source package gains momentum all the "service providers" come out of the woodwork offering support, upgrades, etc. to the point where you could have bought a commercial package for the same price.

Everyone is in this for money. Period.
Posted by rstinnett (41 comments )
Link Flag
Well there is hope,.. just think about it.. most sites or almost all sites dont' want to help those that are starting out... and if they did we wouldn't be looking for a place to sell... i have found http://www.ldbidz.com they are new but i will have to try them out i like what i hear wbout them so why not... i just hope they stik to their plans...

So right now i will support http://www.ldbidz.com
Posted by NoOb21 (1 comment )
Reply Link Flag
 

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