The Ebay-tom Alliance is doomed

The alliance with the Union is different, a year ago, the alliance is in the eyes of everyone look forward to the reception, triggering the earthquake tsunami-like thermal commentary. The result of Jabat Alliance, as you all know, is not a success. The Ebay-tom alliance didn't have much suspense, similar to the Bali Alliance even in the booing, singing the situation of the audience finally ebay and Tom came together, and under ebay and Tom Online agreement, ebay will invest 40 million of dollars, and hold a new joint venture 49% of the shares, While Tom is spending 20 million of dollars online, he holds 51% of the company's shares. Two companies will then share all the proceeds of the new joint venture based on their holdings.

Ebay and Tom have been in Alliance for a long time, so soon the problem came out. No, ebay employee wrote to the CEO to protest that the business was taken over by Tom Online. Internet companies seem to be digging around a lot of things in the near future, if not deal with the old ebay ebay protest, resulting in ebay, ebay old employees have left, Tom's ability to strong I think also powerless.

The author's point of view: Ebay-tom Alliance is not a good attribution, there are many problems. The Ebay-tom Alliance does not have the core leader, the domestic Netizen's radiation intensity is not enough, has not formed the stickiness and the worship object; The Ebay-tom alliance has not changed the competitive pattern of EBAY in the Chinese mainland; the contradictions within the Ebay-tom union staff have not been reconciled, Further give the competitor the opportunity to lead, even ebay-tom union staff all have the possibility of losing. In the traditional portal, Tom himself is not the dominant, the Internet talent is not the dominant, can often appear in the service of Tom's celebrity celebrities are not often seen, the Ebay-tom alliance could not afford the loss of talent.

Perhaps soon Ebayceo Whitman will have to intervene in ebay's China business strategy like Yahoo.

Related information:

Ebay employee wrote to CEO protesting business taken over by Tom Online

In response to the Hong Kong Tom Online takeover of ebay's ebay business, an old ebay employee sent a letter of protest to ebay CEO Walt Whitman. The letter of protest was made public on December 31 on the Internet, triggering a series of problems. In the letter, the veteran employee expressed dissatisfaction with ebay's merger with Tom Online into a new joint venture that threatens employees ' self-interest.

Analysts worry Taobao will take away more users

An ebay spokeswoman said ebay would not disclose how many ebay employees would remain in the new company until the joint venture was completed. Analysts have different opinions about whether employee dissatisfaction will affect the company's performance. But they agree that it is not uncommon for employees of Chinese companies to make such public protests. "I think ebay's employees are sure to worry about the merger of two companies," said an Internet industry analyst in Hong Kong. There will be a big restructuring of the new joint venture, which will further lead to a loss of market share. Taobao will be able to attract more users during this period, thereby further expanding its business. ”

Tom Online: ebay's old employees are the biggest asset

EBAY2003, the world's largest online auction site, earned 180 million of billions of dollars in revenue from ebay, ebay, the largest shopping site in China.

"We think ebay's employees are the best employees in China's e-commerce sector, and they have a wealth of experience," Tom said in a message to Reuters online. And they are ebay's biggest asset. We hope ebay's employees will stay and continue to contribute to the success of the new joint venture. ”

Since ebay employees are paid less than the average wage level of other multinationals in China, ebay's previous employee share is considered a compensation for the difference. For this reason Tom Online also said in the email: "... As a large multinational company that often claims to take care of its employees, we believe that ebay should be more socially responsible and more likely to raise the amount of grants to former employees. ”

Tom Online to invest in petty bourgeoisie holding large shares

For some analysts ' concerns, some analysts have different views, and they are confident that the new executives of the joint venture management can solve these problems. "This should not be a long-term problem," said Wallace Chen, analyst with Credit Suisse. ”

ebay will invest 40 million dollars and hold a 49% per cent stake in a new joint venture, while Tom will spend $20 million on the line and hold 51% of the company's shares, according to an online agreement between ebay and Tom. Two companies will then share all the proceeds of the new joint venture based on their holdings.

The assessment shows that China's media market is developing very quickly, only last year's online advertising spending amounted to 500 million U.S. dollars, and E-commerce as high as 75 million U.S. dollars. Alibaba, China's largest e-commerce company, has competed with ebay, China's Taobao shopping company, to force ebay to slash prices last year.

ebay accounted for 79% of the online shopping market in 2003, according to a survey. And with Taobao's operation, ebay's share fell to 36% in 2005, compared with 59% for Taobao.