MOUNTAIN VIEW and SAN JOSE, Calif., August 28, 2006 - Google Inc.
(Nasdaq: GOOG) and eBay Inc. (Nasdaq: EBAY) today announced a
multi-year agreement to benefit both companies' collective communities
of users, merchants, and advertisers around the globe. The agreement
consists of two primary components involving text-based advertising and
"click-to-call" advertising functionality.
Specifically, Google will become the exclusive text-based advertising
provider for eBay outside the United States. In addition, eBay and
Google plan to integrate and launch "click-to-call" advertising
functionality that leverage both Skype and Google Talk globally in each
company's respective shopping and search platforms. The companies said
the financial terms for certain components of the deal involve revenue
sharing, but did not disclose specific details.
"We're pleased to expand our long-standing relationship with Google to
explore new market opportunities, like click-to-call advertising, that
benefit both our communities of users," said Meg Whitman, President and
CEO, eBay Inc. "People continue to evolve how they shop, communicate
and advertise online. By combining the power of eBay in ecommerce and
Skype in communications with Google's leadership in search and
advertising, we can increase the usefulness of the Internet for
shoppers, merchants and advertisers around the world."
"This agreement underscores how much we value eBay as a partner," said
Eric Schmidt, CEO of Google. "Our technologies will allow us to connect
users to relevant advertising across eBay's international properties.
By working together to promote click-to-call functionality through
Google Talk and Skype, we are offering advertisers another innovative
way to connect with customers."
The companies plan to begin testing the text-based advertising and
click-to-call initiatives in early 2007 that will be evaluated over a
period of several months. The specific components and timing of
implementation will depend upon initial test results, and will vary by
market, largely driven by local dynamics and joint capabilities.
Details of the agreement include:
Search and Advertising on eBay Sites Outside the U.S.
Google will become the exclusive provider of text-based advertising on
eBay outside the United States. This agreement provides Google
advertisers access to one of the Internet's most robust online
communities while enhancing the shopping experience for eBay buyers by
making it easier for them to find the products they seek.
"Click-to-Call" Advertising and Technology Integration
Google and eBay also plan to integrate and launch "click-to-call"
advertising functionality within eBay's U.S. and international
marketplaces and Google's search platform. The click-to-call capability
will allow a user to click on a link or icon within a product or
service advertisement to initiate an Internet voice call to
participating eBay merchants or Google advertisers directly from either
company's respective sites, using Skype or Google Talk.
Click-to-call advertising is an emerging e-commerce model that brings
buyers and sellers together by opening up new ways for advertisers and
merchants to generate customer leads using the Internet. It is
particularly valuable for merchants or advertisers who may not have a
website, or who currently use channels such as local directories to
reach potential customers.
Starting in the near future, Skype will offer its users the option to
download the Google Toolbar, to which Skype will add a custom button.
The companies will also explore interoperability between Skype and
Google Talk via open standards to enable text chat and online presence.
At this time, eBay does not expect this agreement will have a material
impact on its financial results in 2006 or 2007.
About eBay Inc.
Founded in 1995, eBay pioneers communities built on commerce, sustained
by trust, and inspired by opportunity. eBay enables ecommerce on a
local, national and international basis with an array of Websites -
including the eBay Marketplaces, PayPal, Skype, Kijiji, Rent.com and
Shopping.com - that bring together millions of buyers and sellers
every day.
About Google:
Google's innovative search technologies connect millions of people
around the world with information every day. Founded in 1998 by
Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a
top web property in all major global markets. Google's targeted
advertising program provides businesses of all sizes with measurable
results, while enhancing the overall web experience for users. Google
is headquartered in Silicon Valley with offices throughout the
Americas, Europe and Asia. For more information, visit www.google.com.
Forward-Looking Statements
This announcement contains forward-looking statements regarding Google
and eBay (including without limitation as described in the quotations
from management in this announcement) and their strategic and
operational plans related to, and the expected financial impact of, the
announced strategic agreement. Those statements involve risks and
uncertainties, and actual results could differ materially from those
discussed. Factors that could cause or contribute to such differences
include, but are not limited to, the reaction of users of each
company's services to the strategic agreement and associated product
changes, the reaction of each company's competitors to the strategic
agreement, the decision by either party to reduce the scope of this
agreement upon the occurrence of certain events set forth in the
agreement, potential product development issues, and the possibility
that the expected benefits of the strategic agreement may not
materialize to the extent expected or at all. All information set forth
in this release is as of August 28, 2006, and neither company intends
or undertakes any duty to update this information to reflect future
events or circumstances. More information about potential factors that
could impact each company's business and financial results is included
under the captions, "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations," in each
company's respective Annual Report on Form 10-K for the fiscal year
ended December 31, 2005 and Quarterly Report on Form 10-Q for the
quarter ended June 30, 2006, which are on file with the U.S. Securities
and Exchange Commission (the "SEC") and available at the SEC's website
at www.sec.gov.
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