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The gist of the article is this: 1) The author loves Amazon and eBay. 2) Amazon is the best at cataloging items and eBay is still trying to solve this problem
by jm4 18y ago
The gist of the article is this:
1) The author loves Amazon and eBay.
2) Amazon is the best at cataloging items and eBay is still trying to solve this problem with user-generated items.
3) eBay is the auction monster and Amazon has an interest in bolstering their store with an auction marketplace.
So they should merge? What's wrong with competition?
I tend to think this is just some pipe dream from a guy who really likes Amazon and eBay, and not much thought has gone into how the new company will be a greater success than the separate parts or how it could be positive for consumers.
I'm also not seeing what Amazon gets out of this. I understand eBay gets better cataloging technology. I don't think the value of that is anywhere near enough to justify a multi-billion dollar merger but that's beside the point. Amazon has user-generated items already and they often fetch prices at least as high as the same items on eBay. They already have as much visibility as they want for user-generated items. (See the article from yesterday about the Amazon shopping cart. They increased visibility for user items and then refocused on Amazon items.) If they wanted auctions they could add them. My guess is the reason they haven't is because they're not interested.
I think the author should read up on the AOL Time Warner merger. That one was supposed to result in some super company that would rule the media world and we know how well that turned out.
- russell 18y agoLarge mergers pretty much fail or under perform. Disney-ABC, ATT and its cable acquisitions, on and on.