WSJ: eBay Talking with Microsoft, Yahoo

By Ed Oswald | Published April 21, 2006, 2:30 PM

eBay reportedly is talking to both Microsoft and Yahoo on ways that either company could collaborate with the auction site to fend off Google. The search giant has long been an ally of eBay, however Google's recent moves are making the San Jose, Calif., based company nervous.

Google recently introduced Google Base, a service that eBay sees as direct competitor to its own listings. Also, the search engine has been developing an online payment system that sounds similar in concept to eBay's PayPal. Additionally, Google has hired away several engineers and staff from eBay.

According to a Friday article in the Wall Street Journal, the paranoia over Google reached such a fevered pitch at eBay that it triggered a Summer 2005 meeting of executives. In a role-playing exercise, eBay's leaders determined that it was likely that Google would attempt to make a move on the company's core business.

In turn, eBay began simultaneous discussions with both Yahoo and Microsoft last Fall on how to best combat the new threat. Any deal would likely include a larger chunk of ad spending with that partner, as well as information on eBay's customers. A deal similar to the Google-AOL partnership could also emerge, some insiders speculate.

However, eBay is dependent on Google, and the search engine remains by far the largest on the Web. The company has been buying thousands of keywords, where eBay's sponsored link gets top billing on the search result pages.

This means Google provides three times the traffic to eBay than any other search engine. Thus, weaning itself off of Google may be detrimental to the auction site, analysts say. On the Web, revenue is driven by traffic, and without a strong source of new visitors, cutting Google off may affect eBay's bottom line.

The company has so far downplayed speculation of such talks, but sources close to the matter seem to indicate that eBay's agreement with Google will either change substantially, or be discarded entirely sometime in the future.

Comments

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Maybe if Yahoo would get all that crap off their main page and update their search engine to one that actually finds what people are looking for they wouldn't have to worry so much.

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Hey Yahoo and Microsoft, you know two isn't always better than one, right?

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Here's any idea that Microsoft, Yahoo and eBay could do:

INNOVATE...

The only reason Google is taking marketshare, is they have good products, well implemented, and what consumers want.

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That’s funny, why would you publicly announce you want to screw your um "buddy" "partner" I mean Google hasn't exactly announced a Ebay killer so why would you screw yourself. I mean they probably just gave Google a good idea now. With their marketing power and great innovative ways I have no doubt they could mop up Ebay with whatever kind of Paypal/ebay system they would invent. Not to mention ebay is stuck with them anyway, they generate a very large amount of traffic from Google search so, good job Ebay.

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Hmm, where's gbay when you need it?

Ebay needs some competition.

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I certainly agree with that, eBay has gotten way out of hand with their ridiculous fees and lack of support for their users. Trouble is there have been plenty of other auction sites and no one will use them because...no one uses them. Sellers won't because all the customers are on eBay, and buyers won't because eBay is where the sellers are. I really don't know what it would take to give eBay some competition but I wish someone could.

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I predict that the comment after this one (besides smart-a$$ replies) will start a flame war...

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I was kinda hoping mine would.

Alas...no such luck.

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cant waite to see how the dacade ends with the google factor in the mix...

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Colluding together to fend off Google.

Man, ya gotta love it.

These guys have all been around the block many times, a new upstart pops up and immediately starts schooling them...on what *they* invented.

It's too funny. Takes something like Google to show 'em how it's done, eh?

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HAHAHA

Whats the matter Yahoo? You had a 10 year head start and you still couldnt get your act together?

sad sad sad...

Or was it complacency?

well f**k it, go google.

BTW, have you seen the Google Finance flash interface? WOW that just blows away the competition.

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Even Ebay is wary of Google.. I find that interesting.

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Yah, that just shows you how bad google is getting. Google is basicly just taking advantage of them. Ebay needs to dump Google.

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So much for "don't be evil"

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Far as I'm concerned, FleaBay and noPayeePal/PayCon can cease to exist at a time and place of their choosing.

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Boo hoo, nobody is forcing you to use it.

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that's their choice to do so... and google can always script all links to ebay out of their searched, and to paypal, and kick out ebay from advertising... yadda yadda yadda... but neither will do that because they both generate revenue for each other :)

Google is far from evil... they are filling a gap that the consumer has been begging to be filled for years now.

There's a joke going around every now anbd then about GoogleOS. I would eval it as i would every other os I have over the years and oin the end choose the best product at that time to fill my needs at that time.

past all that even... I would LIKE to see Google make an auctyion and payment gateway to compete with ebay and paypal... like MS, they have been the de-facto standard for years, monopolizing up everything so that other auction sites are all but unknown and seldom visited. I remember back in the old day when ebay had competitors... they dont and they ned to have competition :)

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And i neglected to add that: anyone sticking up for them and/or Yahoo-- I recommend they liberally apply Coppertone SPF984 to their neck area as they lounge around outside their trailer! And also to look out for tornadoes-- The Wizard of Oz movie has some great pointers on how to avoid them-- but do try to watch it alone, as its theme may just give JimBob & BillyJoe sitting next to you "ideas"....

btw when such an ill wind does strike and gives you or your acquaintances amnesia, you can recover your names here: HNG

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It sounds like you are trying to say that only rednecks use Yahoo and eBay. How ridiculous is that? Then again resorting to personal attacks make you look so intelligent anyway. So original too, redneck jokes. Is Jeff Foxworthy your mentor? The ironic thing is you are most likely the trailer trash redneck given your obvious ignorance and lack of etiquette. Go find yourself a chatroom to troll in little boy and let the grown ups talk in peace.

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Every sentence in your post, by itself, proves my point, while simultaneously contradicting all yours....
You're sinking yourself deeper & deeper in the hole....as reflected by your handle also...........

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Posting gibberish doesn't help. Nothing you just said makes any sense.

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