Google and eBay’s Tumultuous Relationship

Posted Jun 25, 2007

eBay Inc. and Google Inc. recently settled their differences. eBay was not happy with Google’s PayPal alternative, Google Checkout. After all, eBay bought out PayPal for $1.5 billion in stock back in July 2002.

Two weeks ago, eBay decided to halt being a client of Google’s AdWords campaign, but then decided to reenlist. However, eBay won’t be ordering as many ads as before. This is a blow to Google since eBay is one of their largest clients.

“At a recent conference for eBay merchants held in Boston, Google organised a rival party as part of a campaign to lure eBay users to its Checkout service, launched last year, which is attempting to topple PayPal’s monopoly on online payment,” wrote Jonathan Richards of Times Online UK[1].

eBay now plans on spreading advertising efforts by signing as a client with Google’s competitors, Microsoft and Yahoo! as well as use Google AdWords. It is not yet known how much less eBay will spend on Google, but it will definitely put a dent on the $100 million in revenues that Google has supposedly made from eBay. eBay also previously had roughly 188 million ads positioned through Google AdWords.

As a side-note, many ambitious entrepreneurs had stints with working at PayPal including Chad Hurley and Steve Chen of YouTube, Reif Hoffman of LinkedIn, Scott Banister of Slide, Jeremy Stoppelmann and Russ Simons of Yelp, and David Sacks of

[1] Times Online: eBay ends tiff with Google