EBay Inc. shares rose three per cent in premarket trading yesterday after it announced it has struck a deal to have Google Inc. handle its web search advertising outside of the United States.

The two companies also plan to join forces on a "click to call" service that would let buyers click a link to speak directly to sellers using the companies' respective phone-calling services.

EBay struck a deal with Yahoo Inc. in May to provide search advertising on its US site.

Separately, Google announced on Sunday that it plans to move into the business software market, starting with a set of web programs for e-mail, scheduling and communications in a move seen to challenge Microsoft Corp.

Financial terms of the deal were not furnished, but it is believed to involve a revenue sharing arrangement.

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