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eBAY Jitters

Posted on Thursday, Jul 6th 2006

From WSJ : EBay’s PayPal Chief to Step Down, Jolting Investors

From GigaOm : The eBAY Shuffle

Not good. eBAY looks shaky at best. Leadership team appears tired, burnt out, and frankly, out of depth.

Once again, it is time for YahooBay.

Here are all my pieces in perspective:

YahooBAY: Epilogue

P.S. YahooBay

JP Morgan Says YahooBAY

More on YahooBAY

Hacker News
() Comments

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I am of the view that Microsoft and ebay will be a good combination rather than yahoo & ebay.
Also, Microsoft+ebay can give a good fight to google. I have also written few articles as to why microsoft+ebay is good. Ebay got the users, Microsoft got the money and technology. Also, ebay’s portfolia will be a good addition to microsoft without any overlap.
Yahoo+ebay will not be any good for either of these companies as most the ebayers are also yahooligans. I mean there will not be any incentive in terms of user growth as both have strong user base and also overlap.

I am also predicting that ebay will eithe buyout/merge with

Off topic: I wish to add your website feeds to
Please email us at and let us know, if you wish to be included.
Best regards

sri Friday, July 7, 2006 at 10:55 AM PT


Companies don’t merge with user growth as the only intent. They merge, primarily, because of earnings and revenue growth. eBay needs a different revenue stream, a la advertising revenue, and Yahoo has that in spades. On the other hand, Yahoo’s commerce effort is modest at best. Advertising + Commerce makes for the best portfolio of internet products in my view. That’s why, Yahoo + eBay is still the best merger opportunity.

On the other hand, Microsoft may also acquire eBAY, and that would be a fine merger as well. Both desperately need some oxygen. For Microsoft, eBAY could be a great advertiser on MSN, and integrating Passport and Paypal well, would give them good leverage in commerce. And for eBAY, it basically needs to be acquired by someone at this point, and whether it is Yahoo or Microsoft, or even Google for that matter – it doesn’t matter. It is becoming increasingly clear that they don’t have the legs to stand on their own anymore.

Finally, mergers require culture match. Both Google and Microsoft cultures would clash with eBAY, while Yahoo could be a relatively smoother integration.

Sramana Mitra Sunday, July 9, 2006 at 11:50 AM PT

The intent of merger with ebay is to compete with google. Google is strong with publisher’s community (adsense), adwords and search space.

Microsoft and yahoo are playing catch up game with google and working hard to put their resources in doing exactly same as google did.

Will it bring any success? I don’t think so. You have to have altogether a different plan of attack and beat google.

If i understand it, this is what i believe is happening with microsoft and yahoo.
They are trying to get more advertisers, improve their services and attract more publishers.
To get more advertisors, you need more users surfing on your web property. To get more users, you need better services. To get more publishers, publishing your ads, you need better ad revenue split or better advertising technology.
Adsense technology sucks.
Microsoft and yahoo should look to Kontera technologies and probably buy it out.

In any case, if you follow this path of attack to compete with google, it will be a costly adventure.
Invest heavily in search engine, merge with News Corp (Myspace, ask jeevs etc), snap up eBay.

Will it bring any success? Not sure.
Otherwise, invest in innovative technologies to lure users away from google’s search engine and attarct advertisors to it. Ad publishers will follow suit.
MySpace has that advantage and could be extended to lure advertisors to it.


sri Wednesday, July 12, 2006 at 6:58 AM PT

The fact that anybody can leave feedback on
ebay that can either ruin a seller is not the point, I have known sellers that have simply been delayed in sending
multiple goods, but have then had an avalanche of negative feedback, with a domino effect of paypal charges that
have ruined their ebay sellers career before it began, my main gripe with ebay is the extortionate final value fee that is proportionate with whatever you
sell your item for, this is way beyond the scope of interest, it is even way
beyond charging rental space and having the contents removed three months later (which lets face it is what
ebay is doing with your listing), the fact that ebay ontop of this
charges a final value fee, puts it on a par with a MLM money making scheme (
last I heard this was illegal under ebays terms and conditions, doesnt that
also make ebays business practice illegal), this is a HYIP pure and simple,
full of crooks, cheats, and scam artists, which ebay needs to maintain its over
inflated dividends, I wont even talk about its own payment processor, paypal,
a scam artists paradise, complete with chargebacks, where the seller is held
solely responsible, regardless of wether the items were sent or not.

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Phil Thomas Tuesday, September 12, 2006 at 7:47 AM PT

[…] a long time, I have believed that eBay should have spent money on advertising venue oriented companies, and thought that the Skype acquisition was a stupid move. Only now, it seems to […]

Sramana Mitra on Strategy » Blog Archive » eBay’s Forays Into Media Wednesday, April 18, 2007 at 7:39 PM PT