Onsale and Egghead Head Down the Aisle

It's been a busy week for mergers in the sector, which is posting moderate gains in early action.
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SAN FRANCISCO -- Soft economic data are lending a positive tone to the market early today, though gains have been stymied by a lack of progress from the bond market.

TheStreet.com Internet Sector

index was up 6.13, or 1.5%, at 663.23 early today.

Yet another Net-sector marriage was announced today, this time between online retailer and auctioneer

Onsale

(ONSL)

and online computer and software retailer

Egghead.com

(EGGS)

. The deal is valued at approximately $400 million. Egghead.com shareholders will receive 0.565 share of Onsale for each outstanding share of Egghead.com. Based on Tuesday's closing prices, Egghead.com shares are valued at around 12.7125, a slight premium from its 12 1/16 closing price Tuesday.

In early trading, Egghead.com was up 1/4, or 2%, at 12 5/16. Onsale was down 15/16, or 4%, at 21 9/16.

TheStreet.com

took an in-depth look at this week's deals in the Internet sector in a

piece earlier today.

There were

rumors Tuesday that

Yahoo!

(YHOO)

was set to announce a stock split and those rumors proved true -- sort of.

Yahoo! Japan

, a joint venture between Yahoo! and Japan's

Softbank

, announced a 2-for-1 split while also reporting a profit of $2.1 million for the first quarter, according to

Bloomberg

. Yahoo! also announced it had begun auctions at

Yahoo! Germany

. Yahoo was up 3 5/16, or 2%, at 160 1/4 in early trading.

Also on the move was

Inktomi

(INKT)

. The stock has been weak after the company filed an offer Monday to sell 3.3 million shares. Today,

Banc of America

began coverage of the stock with a buy rating and a 170 price target. It was trading up 5 15/16, or 4.7%, at 131 1/2.

Shares of

GoTo.com

(GOTO)

were rallying after

Donaldson Lufkin & Jenrette

, the lead underwriter for the GoTo.com IPO, initiated coverage with a buy rating and a six- to 12-month price target of 100. It was up 5, or 9%, at 59.

J.P. Morgan

had positive things to say about

Network Solutions

(NSOL)

. Analysts reiterated a buy on the stock and a 150 price target. In a note today, analyst Raimundo Archibold Jr. wrote that he expects Network Solutions to launch its dot-com directory in the last week of July with an initial rollout of 1.5 million to 1.8 million businesses. Network Solutions was up 2 17/32, or 3%, at 76 1/2.

On the IPO front,

Goldman Sachs

priced

Tibco Software's

(TIBX:Nasdaq) 7.3 million-share IPO top-range at $15. The company's products allow computer applications to communicate over the Internet. Tibco is majority-owned by

Reuters

(RTRSY)

.