eBay, the world's online marketplace, has announced two agreements that are expected to further fuel the strong growth of the eBay Motors business.

  The company announced its intention to acquire certain assets of Texas-based CARad.com, a leader in online auction management services for car dealers.

  The company also announced that it has forged a strategic relationship with Kelley Blue Book's kbb.com, the # 1 automotive information site on the Web, to become its exclusive auction-style partner.

  Coupled together, eBay expects these relationships to enable dealers to more easily manage a higher volume of actions, while also helping more buyers find the cars they want on eBay Motors.

  Consistently ranked the # 1 automotive site on the Web by NetRatings, eBay Motors sold more than three million dollars worth of vehicles and parts on its site in 2002.

  "The agreement to acquire the CARad.com business is an important step towards our goal of making it even easier for car dealers to sell more cars on our site," said Stephanie Tilenius, VP and GM, eBay Motors. "Additionally, our relationship with kbb.com should ensure that more people are aware of our site at the critical point when they are normally considering the purchase or sale of their used vehicle," he said.

  eBay's agreement to acquire certain assets of CARad.com is consistent with eBay's overall strategy to work with leading companies to innovate and create the best possible services for its existing and potential buyers and sellers. CARad.com's technology gives car dealers a simplified way to list and manage more vehicle auctions on eBay Motors. In addition to making the listing and auction management process easier for existing sellers, this proposed acquisition is expected to encourage more car dealers to sell their inventory on eBay Motors.

  This acquisition, which is subject to certain closing conditions, is expected to close during the first quarter of 2003. Financial terms of proposed acquisition were not disclosed.
eBay also confirmed that based on its current business outlook, the proposed acquisition will not impact its most recent financial guidance for the Q1 and the full year 2003 which was provided by eBay on January 16, 2003.

  Through the relationship with kbb.com, automotive shoppers who use kbb.com for research and pricing information will have direct access to the relevant vehicle listings on eBay Motors.

  Customers who want to sell their used vehicles and are looking for content and pricing information on kbb.com will also be able to easily link to eBay Motors to list their used vehicle for sale.

  Additionally, this agreement will allow thousands of franchise dealers nationwide who use KarPower, Kelley Blue Book's dealer inventory on eBay Motors.

  "As the # 1 automotive information site on the Web, it's important to work with other top brands like eBay to help our site visitors make more educated decisions," said Stephen Henson, VP (Marketing and Business Development), kbb.com.

Courtesy : The DQ Week