Yahoo and eBay are clubbing together
to take on the world. And, while Microsoft looks over its shoulder,
wondering how adverting funded products threaten its business model,
Google must be looking over its shoulder wondering how this latest
partnership will threaten its ambitious plans.

The Yahoo eBay deal will mean Yahoo ads on the eBay site, and
Paypal on Yahoo. And it will bring together the world’s leading portal with
the world’s leading e-commerce site in an alliance that, perhaps, poses
the biggest threat yet to what had been looking like a long road inevitably
leading to Google hegemony.

At face value, it looks like a potential backward step for eBay. After
all, the last thing the company wants is to advertise products that are in
competition with products its clients are trying to sell. But the deal tie up
will be more sophisticated than that. For example, an eBay auction for
shoes would have ads for complementary products, such as socks.

Perhaps, however, the ultimate money spinner could lie with Skype.
The problem with Skype is that the more successful it is, the less money it
will make. Phone calls between Skype users are free. So if the world
adopts Skype, where will the money come from? The Yahoo tie up could
solve this problem.

Yahoo, eBay
join forces in defense against Google
San Francisco Chronicle

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