Amazon reportedly to announce a partnership with Borders Group
Wednesday, April 11th 2001, 12:00 am
By: News On 6
NEW YORK (AP) _ Amazon.com is reportedly going to take over Borders Group Inc.'s online operations as part of a new partnership between the two companies.
The new alliance would mean that Borders would effectively exit the online book-selling business, The Wall Street Journal reported on its Web site, citing people familiar with the deal.
It wasn't immediately clear how Amazon would benefit from the operations, though the online retail giant is expected to receive promotion from Borders through its chain of off-line bookstores.
Amazon spokesman David Stamper declined to comment, though the company has scheduled a press conference Wednesday morning in Manhattan at which chief executive Jeff Bezos will be attending.
Attempts to reach Border officials for comment after business hours were not immediately successful.
The Seattle-based Amazon has reportedly been in talks with various retailers, including Best Buy Inc., the nation's largest electronics retailer, and Wal-Mart Stores.
According to analysts, the company is looking to forge an alliance similar to the one it struck with Toys R Us last year, whereby Amazon took over its online operations for the toy retailer while Toys R Us continues to handle the merchandising.
The Ann Arbor, Mich.-based Borders, the nation's second largest bookseller, has been struggling with its e-commerce business since it was launched in 1998, three years after Amazon.com and one year after Barnes & Noble.com debuted.