eHoo!! - here we come?

Long-time eBay Strategies readers know that my big prediction is that it makes sense for eBay and Yahoo! to merge sooner rather than later.  With Semel out, it's time for eBay to swoop in and fill the chart that Meg always shows with "net activities":  "Search/Buy/Pay/Communicate/Entertertain" where eBay owns Buy/Pay/Comm but not search.

This fits in so many ways it really is a perfect match. This gets eBay back into Asia with ecommerce, it gives eBay/Y!/PayPal a Google Checkout option. The Y! toolbar+skype are a great desktop combo. Skype and YIM go well together.  Y!'s graphical ads would come onto eBay and eBay sellers could buy them.  Y!'s graphic ads could monetize Skype.  Yahoo Stores is a great fit for eBay.  Meg gets revenge on Alibaba/Jack Ma.  The list goes on and on!

The list goes on.

Yahoo: $37b
eBay: $43b
Total: $80b (see the math is even clean!)

Lots of costs come out of there as you merge the Y! editorial staff with eBay T+S (it's the same function at the end of the day), you get rid of all the SG+A duplication.  Meg is CEO, Sue runs the Y! group.

Come on guys, what's it going to take to get this done?

Comments

[Sam]

Go eBay Go! Y'eBay Auctions?

I would love to see the Yahoo-eBay merger.

[gone2deriver]

I think this is a nearly done deal or at the very least a matter of great debate inside ebay and yahoo. Prior to ebay live I posted that I thought paypal would be spun off to yahoo to avoid anti-trust, and yahoo would in turn hand over it's remaining auction properties and a load of cash to ebay. The post must have hit a nerve as shortly there after our website was hammered by cyveillance, one of their missons being leak detection/information control:

http://www.cyveillance.com/solutions/information_protection.htm

I took it as validation of the rumor : )

First Cramer mentioned some sort of merger now you Scott...... I am sure you guys have some real good inside sources.

I think some form of merger could be good for ebay and yahoo, both companies are bloated. We used to drive past ebay/paypal almost every day on North First and were amazed by the number of cars in the parking lot. You had to wonder for an internet company, What did all those people do??? Any kind of merger would give both companies an excuse to trim all the bloat that has been around for years.

The big issue however is even together I doubt they will ever catch up with Google.... That will be done by someone small, lean, nimble and hungry!!!

[gone2deriver]

I think this is a nearly done deal or at the very least a matter of great debate inside ebay and yahoo. Prior to ebay live I posted that I thought paypal would be spun off to yahoo to avoid anti-trust, and yahoo would in turn hand over it's remaining auction properties and a load of cash to ebay. The post must have hit a nerve as shortly there after our website was hammered by cyveillance, one of their missons being leak detection/information control:

http://www.cyveillance.com/solutions/information_protection.htm

I took it as validation of the rumor : )

First Cramer mentioned some sort of merger now you Scott...... I am sure you guys have some real good inside sources.

I think some form of merger could be good for ebay and yahoo, both companies are bloated. We used to drive past ebay/paypal almost every day on North First and were amazed by the number of cars in the parking lot. You had to wonder for an internet company, What did all those people do??? Any kind of merger would give both companies an excuse to trim all the bloat that has been around for years.

The big issue however is even together I doubt they will ever catch up with Google.... That will be done by someone small, lean, nimble and hungry!!!

[Atul Verma]

If yahoo buys myspace for $10 billion as rumored them post yhoo_ebay merger, Meg would also add "entertain" to the puzzle.....hmm this could get interesting.

[Randy Smythe]

I'm with you Scot! I think it would be a great deal for all involved. It would also take the pressure off the eBay Marketplace business. I just don't know if Jerry Yang wants to give up the throne so soon after his coronation.