Tim Howell’s Weblog

No sooner had JPMorgan reported that it was likely two of the “big four” of Google, eBay, Yahoo! and MSN would get together, than eBay and Yahoo! announce an alliance.

 

In short, Yahoo! will provide advertising on eBay, and eBay will provide PayPal payment services to Yahoo! This is just a start, as the 56 page noted:

 

“In our view, a partnership or merger between eBay and Yahoo! is the most strategically feasible. A combined company would have the leading position in auctions, communications, payments, graphical advertising, audience reach, and geographic breadth.”

 

It will be interesting to see what happens next. Reports suggested MSN was courting Yahoo! and wanting to invest in its search business, but this advance was rebuffed.

 

Developments like these are interesting to watch for a number of reasons, not least of which are the high stakes involved. As these technology companies position themselves as media companies, then the potential to transform how we read, view and digest information – and in particular, advertising – will inevitably change.

 

If you’re interested in these dynamics, download the report (Update: File has been removed) – despite a few inconsistencies, it’s a useful overview of the potential alliances that could be coming, the breadth of services of each player and their overall strengths and weaknesses.