EBay sets up affiliate network, hurting ValueClick

EBay Inc has set up its own affiliate network to encourage Web sites to drive traffic to its eBay and Half.com Web sites, reducing its reliance on ValueClick Inc's network.

In a statement on Monday, eBay said the online auctioneer and Half.com will no longer run their affiliate programs through ValueClick's Commission Junction platform but instead rely on the San Jose, California-based company's own newly created eBay Partner Network.

Shares of ValueClick closed down 7.3 percent to $16.20 on Nasdaq after eBay disclosed the move. EBay stock fell 1.8 percent to $25.77 amid broad declines in the sector. The AMEX Internet Index closed down 2.3 percent.

EBay's Tradera AB, ProStores, Inc; Reseller Marketplace; Media Marketplace; eBay Stores; and StubHub will continue to rely on Commission Junction to drive traffic to their sites. EBay affiliates working with other affiliate platforms, including Affilinet and Tradedoubler, will not be affected.

View: Reuters

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