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Old 14th Jun 06, 09:30 PM
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Yahoo, eBay Join Forces in Partnership
Internet powerhouses Yahoo Inc. and eBay Inc. are joining forces in an alliance that further defines the battle lines in an online showdown with rivals Google Inc., Microsoft Corp. and AOL.

Under the multiyear partnership announced Thursday, Yahoo and eBay will draw upon each other's strengths in online advertising, payments and communications so they can connect with even more Web surfers than they already do.

Shares of both companies jumped on the news.

Sunnyvale, Calif.-based Yahoo operates the world's most trafficked Web site with 402 million unique users and ranks second in the lucrative search advertising market behind Google. It earned $1.9 billion on revenue of $5.3 billion last year, primarily through online ads.

San Jose, Calif-based eBay is the e-commerce leader, with nearly 200 million users of online auctions and another 73 million U.S. accountholders of its payment service, PayPal. It earned $1.1 billion on revenue of $4.6 billion last year, mostly by taking a slice of the auction sales on its site.

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