Xoom.com Keeps Zooming

Shares of InfoSpace.com and Xoom.com zipped higher Friday after the two Internet companies said they're teaming up on content.

InfoSpace.com (INSP) will provide online white pages, yellow pages and classified ads to Xoom.com (XMCM) for the 5.6 million members of its online services Web site.

Shares of InfoSpace gained 4 1/2 or 8 percent to 57 3/8 Friday morning. Xoom rose 13 5/32, or 27 percent, to 61 3/32 amid a rally in Internet companies.

Friday was the second straight day that Xoom.com posted market-moving news. On Thursday, Xoom shares rose 17 percent on a deal to feature eBay on its Web site.

Under the latest scheme, InfoSpace.com users will be offered membership in Xoom.com's Buyers Club.

The move will help Xoom expand free offerings for visitors and members of its Web site by co-branding versions of InfoSpace's white pages, yellow pages and classifieds.

InfoSpace will offer discount prices at Xoom's Buyers Club via its New & Cool home page section.

"InfoSpace.com's directories and classifieds have become an extremely powerful and popular resource that fits very well into Xoom.com's free Web site offerings," Xoom President and Chief Executive Laurent Massa said in a press release.

In other Internet company news:

Shares of E*Trade Group advanced Friday after the company said it paired up with computer retailer CompUSA in a promotional deal.

The online investing services provider (EGRP) said the deal gives customers who open a new E*Trade account a $100 CompUSA gift certificate.

E*Trade said the offer will be made available for one month and consumers can open an account with a minimum investment of $1,000.

Shares of E*Trade rose 2 1/8 to 88 1/8 and CompUSA fell 1/16 to 12 7/16 in recent trading.

Based in Palo Alto, Calif., E-Trade operates a Web site for self-directed investors, and offers automated stock, options and mutual funds order placement.