Yahoo! Japan, eBay Unite for Expansion, for whom?

Posted by Bill Belew on December 5th, 2007 in Japan | Comments Off

Yahoo! Japan and eBay have formed a partnership.

Yahoo! Japan's auction site is Japan's largest. eBay is the world's largest.

I admit, I thought it was in eBay's best interest to tie up with Yahoo! Japan so that eBay might finally make inroads into the land of the Rising Sun.

Nikkei.net says Yahoo! Japan sees the relationship as key to overseas expansion for the Japanese company.

I wouldn't have thought so.

"The agreement to link up the auction sites of the two firms greatly eases the

contractual restrictions on Yahoo Japan's growth agenda."

Yahoo! Japan is a joint venture of Yahoo and Softbank.

Yahoo bans the Japanese auction site operator from using the Yahoo brand outside Japan.

Yahoo! Japan not only wants/needs to expand in the US but also has its sites on

China and India.

The tieup with eBay allows Yahoo! Japan to do so without violating the contract with the U.S. brand owner.

Yahoo! Japan has a lead over Google in Japan for search engine marketing and online ads.

Yahoo! Japan is now free to grow.

What country is next?

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