Shopping.com to Add Own Internet Service

Online retailer Shopping.com has struck a deal with American Interactive Media to develop a customized Internet service provider.

The news comes on the heels of Shopping.com’s agreement to be acquired by Compaq Computer Corp. in a $220-million deal that is expected to be finalized by spring. After the buyout, Shopping.com will be folded into Compaq’s AltaVista Internet search service, which the computer giant says it will spin off as an independent Web portal site.

Analysts say Shopping.com’s agreement with American Interactive will help bolster AltaVista’s line of online products and services.

Shopping.com, which is relocating its headquarters from Corona del Mar to Irvine, said its Internet service will cost $9.95 a month as its introductory price.

P.J. Huffstutter covers high technology for The Times. She can be reached at (714) 966-7830 and at p.j.huffstutter@latimes.com.