Yahoo! & eBay in alliance
May 26, 2006
Yahoo! and eBay have both announced a strategic alliance in order to face-off increasing challenges from Google and Microsoft.
The alliance provides Yahoo! with exclusive advertising rights on eBay, and Yahoo! will additionally provide improved search technology for the auction site.
In exchange, Yahoo! will promote Paypal, which was recently acquired by eBay.
The move demonstrates continuing consolidation among the big ISPs as they attempt to capture user markets in the face of strong competition.