Internet powerhouses Yahoo Inc. and eBay Inc. are joining forces in an alliance that appears aimed at thwarting the recent expansions of online search engine leader Google Inc. and Microsoft Corp. Under the multi-year partnership announced Thursday, the Silicon Valley companies will draw upon each other's strengths in online advertising, payments and communications so they can connect with even more web surfers than they already do.
Sunnyvale, Calif.-based Yahoo operates the world's most visited website with 402 million users and ranks second in the lucrative search advertising market behind Google. B ut the deal between Yahoo and eBay seems likely to shift the competitive landscape.
Yahoo will become the exclusive provider of graphical advertising throughout eBay's website and will provide some search-generated ads, as well. Yahoo's brand and search engine will also be blended into an eBay toolbar that has been downloaded by four million users so far.
News source: The Toronto Star