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Yahoo! and eBay Join Forces

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May 25, 2006 

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Sarah Novotny  |

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Yahoo! and eBay Join Forces

Yahoo! and eBay announced today that the companieshave inked a deal that will expand both businesses in the U.S.This multi-year strategic partnership includes components in the areas of online payments, search and graphical advertising, a co-branded toolbar, and “click-to-call” functionality.The plan between both companies will be fully implemented in 2007.

“Our consumers will benefit from the combination of Yahoo! and eBay’s leading technology and services, providing them with one of the best online experiences,” said Terry Semel, chairman and chief executive officer, Yahoo! Inc, in a press release. “Yahoo! holds a leadership position in all forms of online advertising. This partnership with eBay provides us with a great opportunity to further extend our sponsored search and graphical advertising reach to one of the largest and most active communities on the Web.”

Meg Whitman, president and chief executive officer, eBay Inc. also commented, “We are thrilled to be working more closely with Yahoo! and we think this agreement represents a great opportunity to benefit our communities and grow our businesses. Yahoo! offers an engaged online audience, which drives massive traffic through its rich consumer content and premium services. Working together, we can create more exposure for our properties, which in turn makes them more valuable to our users.”

Details of the agreement include that Yahoo! will become the exclusive third-party provider of all graphical advertisements throughout the eBay.com site, and sponsored search for complementary products on some eBay.com search results pages in the U.S. PayPal will also become Yahoo’s exclusive third-party provider of its online wallet, which allows customers to pay for Yahoo! services such as bank accounts, credit cards or balances associated with their PayPal accounts.

Yahoo! web search functionality and Yahoo! site links, including the Yahoo! Home Page, Yahoo! Mail and My Yahoo!, will also be integrated into a co-branded version of the eBay toolbar.Finally, Yahoo! and eBay will explore developing and deploying “click-to-call” advertising technologies on their respective Websites in the U.S., accessible by users of both Yahoo! Messenger with Voice and Skype.

Tags: e-commerce, eBay, expansion and Yahoo

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