Shares of the largest Internet companies were trading mostly higher Monday, led by bellwethers Google Inc. and eBay Inc., which both rose on news of a new advertising deal between the two companies.
According to a Monday announcement, Google is now an exclusive provider of text-based ads for eBay Web sites serving areas outside the United States. Earlier this year, eBay reached a similar pact with Yahoo for U.S. ads.
Google and eBay also plan to integrate their respective features for making free phone calls using Internet connections. They hope to create an advertising-supported service that will allow consumers to make free phone calls from their computers by clicking on so-called "call-me" icons.
Googles Internet telephone software is part of its Google Talk instant message feature. EBay owns Skype, the worlds most popular Internet-based phone service.
Investors and financial analysts were reacting positively to the news, with shares of eBay up 3% early Monday trading as high as $26.05 a share. Google shares were ahead 1.2% and trading at $377.83 early Monday.
"In our view, this agreement is good for both companies," wrote analyst Jeetil Patel of Deutsche Bank-North America. "Google adds a major traffic partner to its international network, while eBay better monetizes its European sites."
From Googles perspective, the company "continues to grow not only through rapid innovation, but also through partnerships," wrote analyst A. Sasa Zorovic of Oppenheimer & Co. Inc.
