Yahoo Japan confirms Online-Auction alliance with ebay

Yahoo Japan Corp., a unit of Sunnyvale, California-based Yahoo Inc., and eBay Inc. on Tuesday have entered into an online auction partnership, under which the Japanese Internet portal and auction site will make eBay's online-auction items available in the country.

The move marks the online auction giant eBay’s cautious return to Japan after it pulled out of the market five years ago. California, USA based eBay pulled out of Japan in March 2002 after making immense efforts for two years to stand against dominant online auctioneers Yahoo Japan and Rakuten Inc. eBay is once again ready to jump in the world's second-largest retail market with plans to offer its auctions to Japanese consumers.

In a joint statement Tuesday, the two companies announced they launched a new Japanese-language site sekaimon.com that allows Japanese to bid popular U.S. items such as fashion accessories and musical instruments, which are up for sale on eBay, via the Yahoo Japan site.

Likewise, a site will be set up that will allow Americans to buy Yahoo Japan auction items through the eBay site. People in the US will be able to more easily buy Japanese goods popular abroad, such as "manga" comic books, CDs, and products that feature Japanese animation characters and other mascots.

"We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease and convenience," eBay Chief Executive Meg Whitman said in the statement.

"We will diligently work together to create a new auction experience for Japanese consumers while ensuring that we provide a healthy and secure online experience," stated Yahoo Japan President Masahiro Inoue. "We are also considering allying with eBay in countries where eBay has a strong foothold, but we will study this once the US and Japanese business proves successful,” he added.

The companies expect to offer the service by the end of March, said Kimihiko Sato, a spokesman for Tokyo-based Yahoo Japan, operator of the country's most visited Web site.

According to Hiroko Sato, an analyst at JPMorgan Chase & Co. in Tokyo, the partnership between Yahoo Japan and eBay will create a very attractive service for the American and Japanese users as it enables them to purchase items simultaneously in both countries.

Launched in 1996, Yahoo Japan has about 6.6 million registered users. It is 41 percent owned by Softbank Corp., the nation's third-biggest mobile-phone operator, and 33 percent held by Yahoo! Inc.

Yahoo Japan was listed on JASDAQ in 1997 and on the first section of the Tokyo Stock Exchange in 2003. It is the second-most profitable company listed on the Nikkei 225 Stock Average.

Founded in 1995, eBay Inc. manages an online auction and shopping website, where people buy and sell goods and services worldwide. This major online auction service connects hundreds of millions of people around the world every day through commerce, delivering fun, engaging and trusted online experiences. eBay, the world’s biggest online auctioneer, has 248 million registered users.

Shares of Yahoo Japan jumped 3.9% to 56,400 yen ($511.01) at midday on the Tokyo Stock Exchange, before easing to close 54,300 yen, while shares of eBay slipped 1.7% to $32.95 yesterday.