Following a speculative report yesterday from JPMorgan, Yahoo and eBay this morning announced a multi-year advertising and commercial partnership aimed at boosting their languishing positions against
search juggernaut Google. According to the deal, Yahoo will be the exclusive third-party provider of all graphic ads appearing on eBay's auction site. In turn, Yahoo will implement PayPal, eBay's
payment system, as a way for its customers to pay for Web services. The companies will also release a co-branded toolbar that is expected to drive traffic to both sites and combine to create a
click-to-call advertising technology they will both use. No mention was made of a search partnership. Yesterday's JPMorgan report from analyst Irman Khan said Yahoo would gain substantial revenue from
placing banner ads across eBay's sites. Both companies' stock prices received a bounce on news of the new alliance.
Read the whole story at Reuters.com »