Shares in Web audio content provider

Audible

(ADBL)

jumped in early trading Monday on news the company has inked a promotional pact with

Amazon.com

(AMZN) - Get Report

.

Under the terms of the deal, Amazon will snag a 5% stake in Audible and feature Audible services on the Amazon site over the next three years in exchange for $30 million.

Audible shares rose 10%, or 1 1/2, to 15 7/8. Amazon shares fell 1 5/8, or 3%, to 60 1/16. (Amazon closed up 2 7/8, or 4.7%, to 64 9/16; Audible closed up 1 1/16, or 7.4%, at 15 1/2.)

Amazon said the deal gives the e-tailing giant access to Audible's 20,000 hours of digital audio content. Wayne, N.J-based Audible offers content from everything from

The Wall Street Journal

and

The New York Times

to "audiobooks" by

Stephen King

and

William Shakespeare

.

The agreement is expected to close later this quarter.

Amazon.com joins a group of investors in Audible that includes

Microsoft

(MSFT) - Get Report

as well as venture capital firms

Patricof & Co.

and

Kleiner Perkins Caufield & Byers

.

The pact is a boon for both companies, said Nitsan Hargil, analyst with

Kaufman Bros.

"Audible's page is increasing its visibility tremendously, and Amazon buys 5% of Audible at market value while locking out competitors like

Barnesandnoble.com

(BNBN)

in this space."

Amazon bought its stake at Friday's market closing price, $15, Hargil said.

Audible has exclusive deals with most of its content providers, which makes it very difficult for potential competitors to make any headway, he noted. Hargil rates Audible a buy with a $25 price target, though he may revise that number on Monday's news. His firm has not done any underwriting for either company.