Yahoo!, eBay latest Internet heavyweights to pair up

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Sunnyvale, Calif.—Yahoo! and eBay Thursday announced a multiyear alliance to extend their reach in paid search, banner advertising and online payments.

EBay, the No. 1 shopping site, according to Hitwise, will exclusively display Yahoo! ads, as well as sponsored search on some eBay search results pages. Yahoo! will promote PayPal, eBay’s online payment arm, as the exclusive online payment system across its sites, including the Yahoo! Publisher Network. Yahoo! searchers will also get updated listings of products on eBay.

The two companies are also co-branding a version of the eBay toolbar that lets users quickly link to preferred eBay locations. They also said they will collaborate on the development of a click-to-call advertising technology.

—Carol Krol

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