eBay Watch: China Joint Venture Official, Skype Worm and More

Some key developments for eBay watchers:

eBay's China Joint Venture is Official

As I have mentioned several times this week, the rumor on China has finally been made official. eBay announced today in Shanghai that eBay EachNet is forming a JV with TOM Online to compete in China from 2007.

"The new marketplace will bring enhanced online and mobile opportunities to buyers and sellers in China, evolving eBay’s participation in China and extending TOM Online’s wireless service portfolio into m-commerce."

Perhaps surprisingly, eBay has agreed to take a minority 49% stake in the JV with TOM Online controlling 51% stake.

Although I would have preferred to see eBay maintain a 50% stake in the venture, I still think the JV agreement was an absolute necessity for eBay. Sure, eBay made some mistakes in China that may have led to its weak competitive position. But that is past, and looking forward from today, a partnership with a strong local player is the way to go.

Skype Worm Highlights Security Threat

It was only a matter of time before a malicious worm was created to take advantage of the sprawling Skype network. ZDNet Asia reports that such a worm has finally seen the light and uses Skype Chat to ask recipients to download and run a file. The file then installs spyware that can presumably steal personal information.

"According to Websense, the worm seems to have come from the Asia-Pacific region - possibly Korea. The number of people affected is still unclear."

Maynard Webb Makes his Move

Just for your curiosity, Maynard Webb, eBay's former COO that resigned this past August has announced he is to become CEO of LiveOps, a tech startup also based in Silicon Valley. Although entirely expected, the trend of defections by eBay employees to startups must be a concern for eBay human resources.