Yet another Chinese failure story featuring eBay
Another world’s #1 Internet company bites the dust. After spending more than $250 million since 2002 and losing more than $8 million in 2005 (doubling 2004’s loses), eBay has thrown the towel and, remembering that old motto “if you can’t beat them, join them”, eBay has announced a joint venture with a local mobile Internet company called Tom Online.
Tom Online, Beijing-based and owned by the millionaire Li Ka-Shing, will contribute $20 million and provide the local management and market knowledge, taking a 51% stake in the new company. On the other side, eBay will contribute $40 million taking a 49% stake.
Similar steps were taken by other Internet giants like Google and Yahoo. Looks like you cannot win in China without Chinese partners. Who comes next? Only time will tell.
damaso wrote:
MySpace comes next
Posted on 21Dec2006@11:31 | Permalink