The deal, announced before the opening bell, allows both companies to cooperate on advertising to extend their reach on the Web.
The agreement calls for Yahoo to become a provider of all graphic advertisements on eBay’s Web site, as well as a sponsored search for complementary products on numerous eBay search results pages.
Another major piece of the deal is that online payment system PayPal Inc. — which is owned by eBay — will be integrated and promoted to Yahoo’s customers and merchants.
This is an interesting deal on the Net for the simple reason that it starts to show established online companies sticking to their core competencies and trying to avoid doing everything for everyone… In this case, Yahoo! does not build their own payment service, while eBay does not move into display advertising or search.
So while Google is seemingly making an attempt to be in search, email, classifieds (Base), and God knows what else, some large Web companies are starting to focus on what they do and basically order with their stomachs and not their eyes.
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