AOL to Promote EBay on Its Sites

America Online Inc. agreed to feature EBay Inc.’s top-ranked online auction service on its service, which reaches more than 16 million customers, for $75 million over four years. AOL will receive all advertising revenue and may sell advertising on EBay’s Web site under the agreement, which expands earlier pacts. San Jose-based EBay’s listings, message boards and ratings will be featured on customized Web sites on AOL, CompuServe, Netscape’s Netcenter, ICQ and Digital City. AOL subscribers will also receive special auction and promotion offers not available on EBay. Meanwhile, EBay members can download AOL’s ICQ software and see AOL’s news on EBay’s Web site. Separately, San Jose-based EBay filed with the Securities and Exchange Commission to sell 6.5 million shares and raise about $1 billion. The company will sell 4.25 million shares of common stock, while investors will sell 2.25 million. Chairman and founder Pierre Omidyar will sell 790,000 shares, retaining 36.8 million.