Sotheby's teams with eBay for e-auctions

Users will soon be able to bid during live auctions taking place in London or New York following a move by Sotheby's and eBay to launch a co-branded website.

As part of the agreement, the two companies will roll out a new Sothebys.com site this summer which features the same fine and decorative art, antiques, collectibles and rare books that it now sells in auction houses around the world.

Sotheby's signed a 10-year agreement with eBay rival Amazon.com in 1999 but the two companies restructured it one year later. This deal will come to a close prior to the launch of the site with eBay.

Bill Ruprecht, Sotheby's chief executive, explained that the alliance combines eBay's technology platform and global following with Sotheby's auction expertise and experience.

"It represents the next phase in Sotheby's online auction business and we believe it will positively position Sothebys.com for future growth," he said.

Sothebys.com has sold almost $100m worth of property in the two years it has been online, including one of the first prints of the US Declaration of Independence which sold for $8.1m last year.

For eBay, which offers everything from cars to used computer equipment on its site, the alliance will provide an opportunity to expand its offerings of fine art.

"Sotheby's and eBay have complementary strengths," said eBay chief executive Meg Whitman.

eBay will earn money from the deal by charging listing fees and seller's commissions.