EBay Will Shut Down in China
Submitted by Bill Belew on Tuesday, 19 December 2006No Comment
Ebay Inc is planning to shut down its main Web site in China.
Instead of trying to beat the Chinese on its own terms…and lose, Ebay will team up with Beijing-based Tom Online, Inc.
Ebay may announce the partnership any time.
Ebay will take a 49% stake in the new site and Tom Online will hold 51%.
Ebay has long been losing out to Alibaba.
Perhaps this partnership will give my neighbor, Ebay is about a mile away, a chance. But, I don't think so.
what do you think?
I think you are right. This is a huge defeat for E-bay. Some are saying that this is their way of ending up with half a loaf, but actually, they are getting only 49% of a loaf they probably will be unable to control, which in the end may very well end up translating into the crumbs from the end of the loaf. Becoming a minority partner in a Chinese joint venture these days is, almost by definition, a recognition of defeat. Paying a lot for this “privilege” as E-bay has done here …. well that borders on …..
But don’t sell your house just yet.
By now, most of you know what has happened to eBay in China: they tanked. They came in woefully unprepared, spent a lot of money, and now they are essentially gone. But in a classic example of Western face saving
Finally eBay has thrown in the towel, I wonder why it took them this long anyway? There’s no way eBay can compete with the Chinese online auctions site with its rigid policies and exhorbitant fees.
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