Message #94 From:
NewsBot Date: December 19, 2006 04:43:00 PM
EBAY News eBay Inc. and TOM Online Announce Joint Venture Agreement To Enable Next Phase of E-Commerce Growth in China
SAN JOSE, Calif. & SHANGHAI, China & BEIJING--(BUSINESS WIRE)--eBay Inc. (Nasdaq:EBAY) and online portal and wireless Internet company
TOM Online (Nasdaq:TOMO) (Hong Kong GEM: 8282) today announced a joint
venture agreement that will set the foundation for the next phase of
growth of e-commerce and m-commerce in the rapidly growing Chinese
market.
eBay EachNet, eBay Inc.’s China-based
subsidiary, and TOM Online will combine expertise to build a new China
marketplace in 2007. The new marketplace will bring together the
strengths of both companies – eBay EachNet’s
global e-commerce knowledge and large and active trading community in
China, and TOM Online’s local market knowledge
and active wireless user base of more than 75 million.
The new marketplace will bring enhanced online and mobile opportunities
to buyers and sellers in China, evolving eBay’s
participation in China and extending TOM Online’s
wireless service portfolio into m-commerce. Upon the launch of the new
marketplace, eBay EachNet users will be invited to transition to the new
site, and TOM Online will work to deliver its user traffic to the site
as well.
"eBay has helped pioneer e-commerce in China, and by combining our
expertise with that of a strong local partner like TOM Online, we are
even better positioned to participate in this growing market,”
said Meg Whitman, President and CEO of eBay Inc. “This
agreement is a sign of our continued commitment to delivering the best
online buying and selling experiences in China.”
“eBay is one of the world’s
most recognized e-commerce brands and TOM Online has a proven track
record of delivering outstanding services to Chinese consumers,”
said Wang Lei Lei, CEO of TOM Online. “The
new online marketplace to be built by the joint venture will provide an
enhanced user experience, tailored for the China market, and will
capitalize on our companies’ strengths in the
emerging m-commerce sector.”
eBay will have a 49% stake in the joint venture, and TOM Online will
have a 51% stake. Both companies will make financial contributions to
the venture, including a US$40 million cash contribution from eBay and
US$20 million in financing from TOM Online. If mutually agreed, the two
companies can equally share in an investment of up to an additional
US$10 million. In addition, eBay will also contribute its EachNet
subsidiary, while TOM Online will contribute local management expertise,
technology, and brand. The formation of a joint venture will foster
synergy among user communities and distribution channels, enhance rapid
product innovation capabilities on a local platform, and promote mobile
integration.
China has an Internet population of 123 million Web users as of June
2006, which grew by 19% over the last year, and the country has more
than 400 million mobile users. The China eCommerce market is
experiencing explosive growth, and could rise to 46 billion yuan in
value next year, from 5.6 billion yuan last year, according to
IResearch. By working together, eBay and TOM Online will improve their
ability to tap into the potential of new online commerce trends in
China. This new venture builds on the existing relationship between TOM
Online and Skype, eBay Inc.’s online
communications business.
Wang Lei Lei will be chief executive officer of the JV, and drive the
vision for the new local, China marketplace. eBay EachNet CEO Jeff Liao
will provide management support from eBay to the JV. Liao will also
continue to lead eBay’s separate operations
in China, including the expansion of eBay’s
business efforts in China to promote global trade by PRC-based sellers,
as they ramp up their trading practices with people around the world.
eBay will also continue to grow the China Development Center for
worldwide product development under the local leadership of recently
appointed General Manager Daniel Lee, a former Yahoo! Asia CTO. eBay
Inc. expects to continue to increase headcount in China into 2007 as it
evolves its presence in the market.
eBay does not expect this partnership to have a material impact on eBay’s
financial guidance as issued in connection with its third quarter
earnings release on October 18, 2006.
About eBay Inc.
Founded in 1995, eBay pioneers communities built on commerce, sustained
by trust, and inspired by opportunity. eBay enables ecommerce on a
local, national and international basis with an array of Websites –
including the eBay Marketplaces, PayPal, Skype, Kijiji, Rent.com and
Shopping.com – that bring together millions
of buyers and sellers every day.
About eBay EachNet
eBay and EachNet, a leading e-commerce company in China founded in 1999,
have been working together since March 2002, when the two companies
formed a strategic relationship. In June 2003, eBay increased its
investment in China by acquiring EachNet. With eBay’s
global resources and continued best practice sharing, eBay EachNet has
become one of the major online marketplaces in China.
About TOM Online
TOM Online Inc. (Nasdaq: TOMO; HK GEM stock code: 8282) is a leading
wireless Internet company in China providing value-added multimedia
products and services. A premier online brand in China targeting the
young and trendy demographic, the company’s
primary business activities include wireless internet services and
online advertising. The company offers an array of products such as SMS,
MMS, WAP, wireless interactive voice response services, content
channels, search and classified information, free and fee-based advanced
email and online games. As of September 30, 2006, TOM Online is the only
portal in China that enjoyed a top three ranking in every wireless
internet service segment.
TOM Online is a subsidiary of TOM Group Limited (“TOM
Group”), one of the leading Chinese language
media groups in the Greater China region. TOM Group’s
diverse operations span five media sectors: the Internet (through TOM
Online Inc.), outdoor (through TOM Outdoor Media Group), publishing,
sports and TV & entertainment.
This announcement contains forward-looking statements regarding eBay
(including without limitation as described in the quotations from
management in this announcement) and their strategic and operational
plans related to, and the expected financial impact of, the announced
strategic agreement. Those statements involve risks and uncertainties,
and actual results could differ materially from those discussed. Factors
that could cause or contribute to such differences include, but are not
limited to, regulatory uncertainties relating to doing business in the
People’s Republic of China, the rate of
development of the mobile and internet-based marketplace business sector
in the People’s Republic of China, the
reaction of users of each company's services to the strategic agreement
and associated product changes, the reaction of each company's
competitors to the strategic agreement, potential product development
issues, and the possibility that the expected benefits of the strategic
agreement may not materialize to the extent expected or at all. All
information set forth in this release is as of December 19, 2006, and
neither company intends or undertakes any duty to update this
information to reflect future events or circumstances. More information
about potential factors that could impact each company's business and
financial results is included under the captions, "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations," in the company's respective Annual Report on Form 10-K
for the fiscal year ended December 31, 2005 and Quarterly Report on Form
10-Q for the quarter ended September 30, 2006, which are on file with
the U.S. Securities and Exchange Commission (the "SEC") and available at
the SEC's website at www.sec.gov.
TOM Online Inc.
This press release of TOM Online Inc. (the “Company”),
contains statements that may be viewed as “forward-looking
statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements are, by their nature, subject to significant risks and
uncertainties that may cause the actual performance, financial condition
or results of operations of the Company to be materially different from
any future performance, financial condition or results of operations
implied by such forward-looking statements. Such forward-looking
statements include, without limitation, statements that are not
historical fact relating to the financial performance and business
operations of the Company, the continued growth of the
telecommunications industry in China, the expected benefit of any
strategic alliances with other companies and our ability to cooperate
with our alliance partners, the development of the regulatory
environment and the Company’s latest product
offerings, and the Company’s ability to
successfully execute its business strategies and plans, including its
ability to expand its market share and revenue through strategic
alliances.
Such forward-looking statements reflect the current views of the Company
with respect to future events and are not a guarantee of future
performance. Actual results may differ materially from information
contained in the forward-looking statements as a result of a number of
factors, including, without limitation, any changes in our relationships
with telecommunication operators in China, the effect of competition on
the demand for the price of our services, changes in customer demand and
usage preference for our products and services, changes in the
regulatory policies of the Ministry of Information Industry and other
relevant government authorities, any changes in telecommunications and
related technology and applications based on such technology, and
changes in political, economic, legal and social conditions in China,
India, and other countries where the Company conducts business
operations, including, without limitation, the Chinese government’s
policies with respect to economic growth, foreign exchange, foreign
investment and entry by foreign companies into China’s
telecommunications market. Please also see the “Risk
Factors” section of the Company’s
annual report for the year ended December 31, 2005 on Form F-20 (File
No. 000-50631), as filed with the Securities and Exchange Commission.
