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Revenge eBay company crashed Google stock price

A rather unexpected demarche was made yesterday by the main AdWords advertiser, i.e. eBay. She unexpectedly announced that she was shooting all contextual AdWords advertising in the United States. Since this ad was a fairly significant share of AdWords turnover, Google shares immediately fell by 3.5% and even broke through the support level of $ 500.

Analysts are wondering what caused such an unexpected act of eBay. According to insiders, eBay top management was angry with Google because of the provocative Google Checkout Freedom Party , which was specially organized on the same day as the annual eBay Live conference for online store owners. Provocation Google was a success.

Such an unpleasant situation clearly indicates a cooling of relations between eBay and Google, especially since these relationships have never been warm. Two Internet giants are the largest partners (due to the nature of the business, eBay auctions are forced to buy traffic in huge quantities), but they have always competed in many important areas, including the payment systems market (Paypal vs. Google Checkout). Thus, the cold war between eBay and Google is constantly going on, just rarely turns into open conflicts, as it happened yesterday.

Google's provocative party is organized to protest against the discriminatory policies of the eBay auction house, which prohibits auction owners from accepting payments through Google Checkout, ostensibly because of its low popularity. All dissatisfied merchants who came to the eBay conference, Google invited me to a party with a free drink to “protest”. The event was widely advertised in the press.
The cost of this trick was $ 5 billion. Approximately by that amount the capitalization of Google decreased yesterday.

According to sources, eBay senior management is now discussing what to do next in this situation. In March 2007, they bought out 802 million banner-shows, which represents about 4.1% of the total Adwords turnover in the United States. With 357 million hits, a subsidiary site Shopping.com provides another 1.8% of the turnover in the Adwords network.

via Infoworld

Source: https://habr.com/ru/post/10731/

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