Google will act as text-based advertising provider for eBay outside the United States.

Google Inc., and eBay Inc., yesterday announced a multi-year agreement to benefit both companies' collective communities of users, merchants and advertisers.

The agreement consists of two primary components involving text-based advertising and click-to-call advertising functionality. Google will become the text-based advertising provider for eBay outside the United States. In addition, eBay and Google plan to integrate and launch click-to-call advertising functionality that leverage both Skype and Google Talk in each company's respective shopping and search platforms. The companies said the financial terms for certain components of the deal involve revenue sharing, but did not disclose specific details. 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.

"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 Meg Whitman, President and CEO, eBay Inc. "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."