Alibaba Group's Re-evaluation of Yahoo Ties May Prove Harmful To Yahoo's Presence in China, warns SEO Experts



Released on: September 14, 2010, 7:37 am
Author: QueryCLick LTD
Industry: Internet & Online has been something of a success story, beginning its internet life as a small start-up and growing into an online force to be reckoned with. Furthermore, it has recently expanded it overseas presence with AliExpress, an online marketplace akin to eBay.

In fact, it seems that a closer relationship with eBay may replace that held between Alibaba and Yahoo. During the two-day Alifest event this month, John Donohoe, chief executive of eBay, made an unlikely appearance, with Alibaba chairman and chief executive Jack Ma announcing that:

“We are competitors in some ways but we have the same dream, the same mission and the same goal to help entrepreneurs...I believe one day we will work very closely together.”

The hinted co-operation between the companies coincides with the deterioration in Alibaba's ties with Yahoo, whose proposed venture into mainland China, along with the denouncement of Yahoo's lack of core technologies by CEO David Wei have formed the basis for the alleged re-assessment of the current partnership between the companies.

Search Engine Optimisation experts commented on the benefits of increased co-operation between AliExpress and Ebay:

“A close partnership between AliExpress and eBay could be hugely beneficial for both sides, with one providing the other with valuable contacts and insights into their respective markets. The Chinese market is notoriously difficult to master for foreign investors, whilst eBay could provide expert advice for Alibaba's expanded online presence in the West.”

Following news that Yahoo Hong Kong Managing Director, Tsoi Po-tak, revealed the company's hope to lure advertising from the Chinese mainland, China's Alibaba Group – which is 40% owned by Yahoo Inc. - may rethink it's relationship with the US giant.

The Alibaba Group owns China's largest b2b e-commerce website, as well as the largest consumer to consumer site, Taobao. As Yahoo has no direct presence in China, it is represented on the mainland by the Alibaba Group. The recent hint from Tsoi Po-tak regarding Yahoo's aims of attracting advertising from the mainland, would align Yahoo Hong Kong in direct competition with, a state of affairs which has urged the latter to re-evaluate their dealings with the company.

SEO company view the potential re-negotiations as more detrimental to the US company, rather than the native A QueryClick spokesperson commented:

“Yahoo cannot afford to lose its foothold in China over the proposed foray into the mainland. It has been proven that in China, Chinese firms lead the way through an inherent understanding of the marketplace; Baidu is to China what Google is to the entire Western population.”

However, Yahoo Inc. CEO Carol Bartz has been under growing pressure from stakeholders to step up its independent operations in China. Some see the planned mainland business dealings as a ploy to bring Alibaba to the bargaining table following earlier comments from the Chinese firm regarding proposals to buy back the 40% share held by Yahoo Inc.

About Queryclick
QueryClick is an Edinburgh based SEO firm. QueryClick is quickly becoming a leading figure in UK SEO and SEO web design given the company's bespoke and ethical approach to business.

QueryClick Ltd (SC342868)
50 Albany Street
tel: 01314479079
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