eBay Losing to Yahoo! and Local Competitors in Asian Online Auctions

by: Steven Towns

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

HEARD ON THE STREET: China May Be eBay's Latest Challenge As Local Rivals Eat Into Market [Wall Street Journal]

Summary: In China, eBay has fallen from being first in on-line auction market share to second this year with only 29% compared to Alibaba.com's TaoBao's 67%. Yahoo! by the way owns a 40% stake in Alibaba. Growth in listings has slowed substantially since TaoBao began offering free listings. Also, the CEO of eBay's China unit, Eachnet, resigned suddenly late last month, although an eBay spokesman said he had completed his scheduled tenure. Meanwhile, Chinese newspapers are reporting eBay is discussing a possible sale of part or all of Eachnet to Hutchison Whampoa's media flagship, Tom Group. This is regarded as a negative development given the nearly $300 million invested in Eachnet. The situation isn't much better in South Korea, where eBay also lost its top market share spot to local competitor Gmarket, of which Yahoo! owns a minority stake. Yahoo! seems to have the upper hand in Asia where it earlier beat eBay to market in Japan influencing the latter's exit in 2002.
Related links: IRG: eBay in negotiations to sell/merge China business with Hutchison Whampoa's Tom GroupOnline Auction Market in China: eBay/EachNet vs. Yahoo!/TaoBaoCEO Whitman: eBay "Behind a Tad in China"Yahoo and eBay: UndervaluedLiking the Internet Big-3 Long-TermeBay's Core Listings Remain Solid - Shares Remain Materially UndervaluedeBay: Runaway SG&A Expenses Dragging Down The StockeBay Listings for 3Q'06 Continue to Track Ahead of EstimatesEbay's Growth, Margins Remain RemarkableHighlights from Korean GMarket's SEC Filing • Conference call transcripts: eBay Q2 2006TOM Online Q1 2006Yahoo! Q2 2006
Potentially impacted stocks and ETFs: eBay (NASDAQ:EBAY), Gmarket (GMKT), TOM Online (NASDAQ:TOMO), Yahoo! (YHOO)

Comment on this article

Seeking Alpha's Wall Street Breakfast summarizes today's key market- and stock-moving news. Receive it by email every weekday morning (free/no spam).

Seeking Alpha is not affiliated with Wall Street Journal.