This deal will bring a massive advertising client to Yahoo! to help boost their revenues, and allow for eBay to cross-sell their PayPal payment platform across one of the internet's largest traffic networks.
The alliance is seen by many as a direct challenge by two of the worlds biggest Internet companies against their main rival, Google, targeting Google services like Google Base, which caused an impact on eBays dominant position following its release last year.
This deal will also make the eBay owned PayPal financial facility the exclusive third-party payment provider for many Yahoo! products for advertisers, publishers and merchants, including the Yahoo! Publisher Network, Merchant Solutions and sponsored search marketing, while Yahoo! will provide search services within eBay.
While the new alliance may not immediately generate a massive challenge to Googles search dominance, it does mean the combining of resources will give both companies increased leverage within advertising and a wider customer base, as well as facilitating joint technical developments such as "click-to-call" advertising using their respective voice over Internet Protocol (VoIP) services Messenger and Skype.
