[photopress:tomcom.jpg,full,alignright]The Wall Street Journal has reported (which means you can take it is pretty official) that online auction site eBay is planning to shut down the company’s site in China and will replace it with one that is to be operated jointly with Tom Online which is mainly owned by Li Ka-Shing. eBay will take a 49% stake in the new site and will continue to control offerings from the United States on the China site.
eBay has struggled in China to compete against home-grown competitors and has issued several statements avowing that it will never retreat. And this is not a retreat. This is a tactical regrouping.
This is the second kick eBay has had in Asia. Japan was a disaster. First Yahoo got ahead and then Yahoo got into bed Japan’s Softbank and a few years later eBay was basically out of Japan.
In the United States and elsewhere, eBay dominates the online auction market and is still highly profitable. As for example $281 million in net income in the last quarter with a a 31 percent jump in revenue.
Source: News.com
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