Fergie's Tech Blog

Foreign Internet Firms Struggle in China

Steven Schwankert writes on InfoWorld:

For the second time in two years, a major U.S. Internet company has chosen to offer its subsidiary to a local company, after failing to be competitive and attain profitability in China.

EBay's announcement Wednesday that it will move from stand-alone ownership of its eBay EachNet subsidiary and enter into a joint venture with Tom Online capped a three-year slide in eBay popularity in China. When the auction giant bought the 67 percent of Shanghai-based EachNet that it didn't own in 2003, that site held about 90 percent market share. As of Wednesday's sale, it has about 29 percent.

posted by Fergie @ 12/20/2006 12:10:00 PM