E-Commerce Stock Watch: eBay Forms Alliance with Warner Bros.

Shares of auction site eBay (Nasdaq: EBAY) were down more than five points to below 150 in early trading today after Amazon.com (Nasdaq: AMZN) announced it is opening its own auction house. But eBay shareholders shouldn’t panic. eBay is still the king of auction sites, and Amazon.com isn’t going to erase it anytime soon.

Earlier today, eBay and Warner Brothers signed a three-year deal in which eBay will be promoted on Warnerbrothers.com. This is an interesting agreement, because Warner Brothers is an important supplier of music and videos to sites like Amazon.com, and Warner Books is an important supplier of books. Could eBay be branching out into retail sales? It’s not inconceivable.

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