Two days ago, I’m in doubt on the rumor of the partnership between eBay and Tom.com and did posted a post on this matter. I also posted a post on the possibility of the split of eBay China’s business units.

On this matter, Bloomberg just published a news that entitled, eBay to Shut China Unit, Form Venture with Tom Online. According to this news, eBay will close its unprofitable China Web auction unit and form a venture with billionaire Li Ka-shing’s Tom Online to run the business in the world’s second-biggest Internet market. In addition, eBay will pay $40 million for a 49 percent stake in the venture, both companies said in a statement today. You also can read the announcement made by eBay China here (in Mandarin).

Meanwhile, I still do not know what is the detailed plan for this venture. My own view is China seems to be the tough market for the U.S. Internet giants. I’m not sure whether this is due to China people are more favor to the Chinese-owned sites or portals when they come to merchant or do some searches online, or etc. I guess the venture for a foreign company with the Chinese company is the only strategy that can be worked out temporarily.