Yahoo and eBay are joining forces in an alliance that appears aimed at thwarting the recent expansions of online search engine leader Google and Microsoft.

Under this partnership 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.

Yahoo will become the exclusive provider of graphical advertising throughout eBay's Web site and will provide some search-generated ads, as well. Yahoo's brand and search engine will also be blended into an eBay toolbar that has been downloaded by 4 million users so far.

Ebay's PayPal service will become the preferred payment provider for purchases made on Yahoo's site, which provides a wide array of shopping, auctions and subscription services.

The Skype service will be used to build another marketing vehicle that will allow advertisers to connect with prospective customers on the phone instead of through their Web sites.

Yahoo and eBay said they will begin testing some of their joint services later this year, but all the benefits are unlikely to be available until next year.


Source: Yahoo and eBay join hands
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