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Look out Google

Yahoo and eBay are soon going to have a lot more in common.  Both companies just signed an agreement to cooperate in major promotional and corporate decisions.  The partnership is specifically targeted as a defensive move against Google, according to analysts, although neither company is claiming so in as many words.

Yahoo and eBay will share some decision making with advertising and promote more cross-branding between the two empires.  eBay, for example, is home to Skype and PayPal. Some applications of this partnership may include Skype integration into Yahoo Talk or PayPal checkouts via Yahoo Stores.

The announcement did claim that Yahoo will become the sole provider of graphical advertisements for eBay and provide eBay with integrated product listings in Yahoo Search.  Furthermore, Yahoo and eBay will pursue a click-to-call advertising campaign that will allow user with Yahoo Talk or Skype to directly call an advertiser in a Yahoo advertisement. 

Yahoo has a relatively small auction house compared to eBay, but there was no announcement as to whether or not this auction house will remain operational.  Yahoo's statement claims the alliance will be effective immediately, but fruits of the company labors will probably not surface until 2007. 


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