News Corp.'s (NYSE:NWS) MySpace users would be able to buy and sell stuff with each other using eBay Inc.'s (Nasdaq:EBAY) auction site under a partnership being discussed between the two companies, according to The Wall Street Journal (subscription required).
If the deal is finalized, it would be a huge win for eBay, which has been looking for ways to boost the growth of its core auction business. News Corp. benefits by giving MySpace users another reason to spend time on the site when instead of studying or actually interacting with people in the real world. The one company that's not happy about this potential hookup is Google Inc. (Nasdaq:GOOG), the Journal said.
Remember all of the hoopla surrounding the Google-MySpace deal. Well, according to the newspaper it's not been finalized yet. Google probably isn't going to be real keen on any deal that promotes a service that competes against Google Base and Google Checkout.
Though this deal won't derail that deal, it does underscore the complicated relationship between Google and eBay. The companies often -- not very convincingly -- describe each other as partners. A more accurate description is that they are stuck with each other. eBay is one of the largest buyers of keyword advertising on Google. The auction site is dependent on Google for traffic. eBay probably needs Google more than the other way around.
But as I've argued before, reports of eBay's death are premature. Google has had to offer pretty big incentives to merchants to get them to use Google Checkout. Google Base isn't anything special either.
The companies will continue to eye each other like prize fighters in a ring for some time to come.
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Reader Comments (Page 1 of 1)
2-07-2007 @ 8:55AM
firemeg said...
This should push eBay stock higher...for a stint. This deal while it looks like a fistful of candy, should be examined a bit closer before anyone pees themselves with excitement. My advice is make your money on this deal and the get far away from eBay. When the lawsuits start rolling in, you don't want to be anywhere near the train wreck that will ensue.
Although sales of dirty/used underwear on eBay should skyrocket, this deal stands to give predators (child predators and others) a legitimate excuse to meet with underage children and others that they prey on.
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2-07-2007 @ 1:55PM
Phil said...
One thing that I am not clear on is why exactly would someone want to interface with eBay through myspace insetad of directly through eBay? Is there some extra advantage, and if so what is it?
http://www.myauctionfeedback.com
2-07-2007 @ 3:29PM
Randy Smythe said...
I would much prefer to see a Google - MySpace marriage then an eBay - MySpace marriage only because eBay needs more competition not less. MySpace is a perfect new market for eBay for auctions and Store Items. It provides them access to a young Demo. If Google had a stores platform I would prefer that to eBay but I would really prefer that FIM create their own Store platform and faciliate MySpace sellers listing Auctions on eBay. This way FIM would not be held hostage to use PayPal.
The best suggestion of all would be for all parties involved: eBay could include PayPal in Google Checkout and at the same time give Google Checkout freedom to be selected on eBay and MySpace can create an ecommerce relationship with eBay for Auctions and Stores and Google for Classified Ad’s using GoogleBase - The Trifecta!
Of course this last idea falls under the category of: When Pigs Fly! So get your camera phones ready.
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