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AOL, eBay set 4-year pact
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March 25, 1999: 12:10 p.m. ET
Auction site to pay $75M for advertising, promotion on AOL brands
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NEW YORK (CNNfn) - Shares of America Online and eBay soared Thursday morning on news that the world's largest online service and one of the most popular e-commerce sites have set a four-year strategic marketing alliance.
By late morning, AOL (AOL) shares had risen more than 7.5 percent to 126-1/2, and eBay (EBAY)stock was up more than 9.5 percent at 160-1/4.
Under the alliance, the two companies will create customized co-branded sites for America Online's family of brands, which include AOL, AOL.com, CompuServe and Netscape's Netcenter.
eBay, which currently has about 2.1 million users, will pay AOL $75 million over the term of the agreement for promotion and advertising of its services on AOL domestic and international brands. AOL also will get all the advertising revenue generated by the co-branded sites.
The sites will include comprehensive listings, feedback and ratings, message boards and select content from eBay, which will offer the 16 million members of AOL ready access to its online auctions.
"This alliance not only provides us significant customer acquisition opportunities, it serves as an important brand investment," said eBay Chief Executive Meg Whitman.
eBay to offer 6.5M more shares
Separately, eBay said Thursday it has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 6.5 million more common shares.
Goldman Sachs and Morgan Stanley Dean Witter are lead underwriters for the offering. 
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AOL
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