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@Home adds auction sites
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January 14, 1999: 1:34 p.m. ET
Egghead, Internet Shopping Network anchor tenants on new shopping channel
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NEW YORK (CNNfn) - What do I hear for an online auction deal?
The stampede to connect consumers to online auction sites continued Thursday as @Home Network announced agreements with Egghead.Com and Internet Shopping Network's First Auction.
Internet service provider @Home (ATHM) said the move is intended to drive online auctions to the Redwood City, Calif.-based company's users. Egghead.com (EGGS), an Internet-based retailer, and ISN's First Auction will be anchor tenants in the new auction category on the @Home Shopping Channel.
In a statement, @Home cited a report by Jupiter Communications that estimates sales via online auctions will grow to $3.2 billion in 2002. The number of online users that make these purchases via auction is estimated to grow from 1.2 million in 1998 to 6.6 million users in 2002.
"Having witnessed the growing usage and popularity of online auctions, we believe our agreements with Egghead.com and First Auction will be vital components in delivering a compelling shopping experience to our customers," said Charles Moldow, vice president, @Media sales and marketing, @Home Network.
The agreement is one of several events connected to the online auction area.
On Monday, Sharper Image Corp. (SHRP) saw its stock shoot up dramatically after the specialty retailer said it will expand its Web site, sharperimage.com, to include a Sharper Image Product Auction site.
That same day, Ticketmaster Online-CitySearch Inc. (TMCS) agreed to acquire privately-held online auction community CityAuction Inc. in a deal worth approximately $45 million.
USA Networks Inc. (USAI), which holds a 62.5-percent stake in Ticketmaster-CitySearch, also runs the Internet Shopping Network.
In recent weeks, shares of eBay Inc. (EBAY), uBid Inc. (UBID) and Onsale Inc. (ONSL) all have climbed.
What's the deal with all this online auction activity?
"I think a lot of this was spurred by eBay and the performance of that stock," said Peony Kao, an analyst at the Renaissance IPO Fund. "That stock has been so popular. Retailers feel it's something they easily can do. If you have retail stores and products you sell, you can also auction them off via the Internet."
Kao said online auctions appeal to consumers who are looking for a bargain.
"If you find something not essential to you," she said, "it would probably be a smart move to check it out on an online auction site."
@Home Network was up 2 at 107-3/4 in afternoon trading, while Egghead was up 2 at 24-3/4. USA Networks was down 1 at 32. 
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