SAN JOSE, Calif., SHANGHAI and BEIJING, Dec. 20 /Xinhua-PRNewswire/ --
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.
http://www.tom.com/
http://www.tomgroup.com/eng/index.asp
Forward-Looking Statements
eBay Inc.
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 http://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.
