In the continuing online 'cage match', a new team has formed. This is from PCWorld.com.
The partnership comprises several deals, including that Yahoo will exclusively provide all graphical advertisements on the eBay.com Web site. Yahoo will also provide sponsored and improved search for some eBay search result pages and offer more up-to-date results from eBay's Web site to customers using Yahoo to search the Web.
As part of the agreement, PayPal, a division of eBay, will begin exclusively providing online payment services for users of Yahoo services and offer payment options for Yahoo merchants and publishers.
This should spur some interesting developments.
Many analysts believe moves like these are designed with Google in mind.
Both companies realize Google is a dangerous competitor, and this partnership, as a defensive measure, is a smart move, said Rob Enderle of the Enderle Group.
"Much like Microsoft was in the packaged software space, Google is the company everybody is gunning for and represents the biggest threat," Enderle said.
But as most of us understand, alliances are based on mutual benefit. If one side begins to reap more than their "fair share" of the rewards, all bets are off. Some are already casting their lots.
Some view the deal as more positive for eBay than for Yahoo. "We see eBay as the big winner here. This deal should improve the position of an already very strong PayPal franchise. But what's potentially most needlemoving/thesis-changing here is eBay tapping into display advertising," wrote Citigroup financial analysts in a research note.
Well, it should be fun to watch. My only concern is as it relates to competition. The fewer the choices, the more my anxiety!
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