eBay Sold on Auction Pact with Lycos

eBay (Nasdaq: EBAY) announced Wednesday that it has signed a multiyear marketing agreement with Spanish Internet giant Terra Lycos (Nasdaq: TRLY).

The deal calls for eBay auctions to be integrated into the Lycos auctions site and will make eBay a featured advertiser on the Lycos network.

“eBay is trying to make itself as ubiquitous as possible,” Jupiter Media Metrix analyst Jared Blank told the E-Commerce Times. “This will probably not be the last portal deal we see eBay make.”

Blank added: “It shows the futility of trying to compete with eBay. Lycos tried to make it on its own by aligning itself with the FairMarket Network. However, for anyone who wants to offer auctions, aligning yourself with eBay is quickly becoming the only way to do it successfully.”

Financial terms of the deal were not disclosed.

Value for Both

Lycos, which cut 15 percent of its staff in May, said it gains because Lycos users will now have access to the millions of auctions listed at eBay.

“Adding eBay’s breadth to Lycos Auctions creates a must-visit destination that keeps our customers in our network, while generating additional revenue for Terra Lycos,” said Mark Stoever, vice president of media for Lycos.

Although Lycos’ auction site, which hosts a few hundred thousand auctions, is small in comparison to eBay’s, eBay will gain exposure to the 94 million unique Web surfers who visit Lycos properties each month.

“The Lycos Network has tremendous reach and opens another door for eBay,” said Jeff Jordan, senior vice president and general manager of eBay U.S. “Lycos will help generate traffic and exposure for the millions of items available on eBay, while we help Lycos users discover the value and selection of the eBay marketplace.”

eBay Expands

San Jose, California-based eBay has been working aggressively to expand its reach, both in the U.S. and internationally.

In May, Meg Whitman, eBay’s chief executive officer, told investors that the auction giant was planning to launch a storefronts program in coming months that will let vendors sell their merchandise to eBay users at fixed prices.

The company also announced in April that it is expanding its live auctions program. eBay now offers live auctions in 12 categories and, in an apparent bid to generate more interest and traffic, has moved the live auctions link to its main home page.

Here and There

In addition eBay has allied with software giant Microsoft to develop e-commerce applications and expand the companies’ Web presence. A central component of the deal calls for Microsoft to integrate eBay’s online auction services into several of Microsoft’s Internet properties, including the MSN network, the Carpoint online automotive site and WebTV.

eBay’s international expansion efforts include the purchase of Paris, France-based iBazar in February and the launch of Web sites in Ireland, New Zealand and Switzerland in March.

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