The partnership between Yahoo! and eBay has dealt a powerful blow to the other players on the online market, who will be forced to redefine their strategies in order to compensate for this handicap.
Analysts believe that Microsoft will be forced to cut prices or pursue a similar partnership as the one between the largest portal and the largest auction site.
This alliance will not have an immediate effect on Google, and that's because of the leadership position enjoyed by the Mountain View company.
"The deal shows they need to be more creative and go after the advertising base more aggressively. It does put more emphasis on whether you get there through an alliance or on your own", Martin Pykkonen, an analyst at Hoefer & Arnett, told Reuters.
As expected, Yahoo! will become the exclusive provider of graphic advertisements for eBay and it will also contribute with some search services, while PayPal will be the only third-party provider of Yahoo's online wallet.
Microsoft and Google will both find it difficult to ally with a large company because the competitors are not too fond of contributing to the expansion of either one, suggested Bruce Richardson, an AMR Research analyst.
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