The online auction house said Wednesday it is buying Mumbai's Baazee for $50 million, adding another far-flung company to its portfolio of international Web properties. Baazee has about 1 million registered users on its Internet sites, on which users buy and sell goods through a competitive bidding system.

There are an estimated 17 million Internet users in India, the world's second most populous country. Baazee was founded about four years ago and is currently India's biggest online auction house, according to eBay. The acquisition should close in the third quarter and isn't expected to have a meaningful earnings or revenue impact this year.

eBay was recently down 5 cents, or 0.1%, to $87.21 on the Instinet premarket session.