It is the latest in a series of Web and marketing tie-ups announced thisweek between Internet services companies and major US retailers.

Under the pact, Microsoft's MSN Internet access and other Web products willbe demonstrated and sold at more than 350 Best Buy stores in the US and onthe company's Web site, BestBuy.com.

Best Buy will receive prominent and preferred advertising space onMicrosoft's network, including cable and Internet station MSNBC and itsExpedia.com travel service.

A Best Buy spokeswoman said Microsoft intended to buy about 4 millionshares, or around 2 per cent, of the company. The timing and price of thedeal and whether the shares would be existing or new shares is yet to bedetermined.

Best Buy shares were 3-7/16 at 50-7/8, while Microsoft was up as much as6-9/16 at 115.

The companies said the deal would involve profit-sharing.

Also on Thursday, the world's largest retailer Wal-Mart Stores Inc. and topInternet services company America Online (AOL) said they were teaming up toform a jointly named Internet access provider.

On Wednesday, AOL also announced a marketing pact with Circuit City StoresInc, the number two seller of consumer electronics in the US. While KmartCorp., the third US retailer said it would form its own Internet company byteaming up with Web media network Yahoo! Inc. and retail concern MarthaStewart Living Omnimedia Inc.