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eBay Calls on Google

Updated from 7:20 a.m.

eBay (EBAY - Get Report) set a partnership with Google (GOOG) to sell text-based ads internationally.

The companies said "certain components of the deal involve revenue sharing," but terms weren't otherwise disclosed. The agreement also includes a so-called click-to-call advertising deal using eBay's Skype and Google Talk.

"We're pleased to expand our long-standing relationship with Google to explore new market opportunities, like click-to-call advertising, that benefit both our communities of users," said eBay chief Meg Whitman. "People continue to evolve how they shop, communicate and advertise online. By combining the power of eBay in ecommerce and Skype in communications with Google's leadership in search and advertising, we can increase the usefulness of the Internet for shoppers, merchants and advertisers around the world."

"This agreement underscores how much we value eBay as a partner," said Eric Schmidt, CEO of Google. "Our technologies will allow us to connect users to relevant advertising across eBay's international properties. By working together to promote click-to-call functionality through Google Talk and Skype, we are offering advertisers another innovative way to connect with customers."

The companies plan to begin testing the text-based advertising and click-to-call initiatives in early 2007 that will be evaluated over a period of several months. The specific components and timing of implementation will depend upon initial test results, and will vary by market, largely driven by local dynamics and joint capabilities.

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