Friday, June 22, 2007

eBay In China - "Play It Again Sam"

eBay announced recently that they have partnered with TOM Online to once again enter the Chinese Auction Market, this summer. I normally wouldn't comment about this because these kind of stories are better left to the experts but today was a relatively slow news day so I thought "Why Not?"

It is obvious to me that eBay believes they need a solid presence in China and based on the run-up in the stock today, investors must believe this as well. It certainly is logical that the #1 Auction company in the world needs to be very active in the world's largest marketplace but they've already attempted this once before. I'm not sure what they plan to do different this time that will win them that foothold they need to compete against TaoBao's Alibaba. I do admire them for trying, China is certainly worth fighting for.

Here is a more sophisticated look at the situation from The Motley Fool.

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