Yahoo and eBay Make Waves

Yahoo! and eBay have reached an agreement that will further fortify their relationship on the web. For years, eBay has been appearing in the search results of Yahoo! for nearly any term plausible, but this will now be stepped up beginning in 2007. Not only will this prove profitable for eBay in terms of branding and search traffic, but Yahoo! will be set to generate huge revenues through this deal.

Under the multiyear partnership announced Thursday, Yahoo and eBay 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.

Shares of both companies jumped on the news.

Once more we see another move made by one of the big three search engines. Yahoo! is set on getting any edge possible over Google who has released plans for a Paypal like system, Google Wallet. This strategic alliance of two internet powerhouses is certainly going to catch the eyes of Google, MSN, and AOL.

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