AOL Makes $100 Million Equity Investment in Amazon

Posted on July 25, 2001

Amazon.com, Inc. and America Online have announced a new multi year strategic alliance involving cross-promotion and the use of Amazon's ecommerce technology on AOL's shopping services. The companies also announced that America Online has made a $100 million equity investment in Amazon.com common stock. The investment has sparked speculation among financial experts that America Online may look to purchase a majority ownership in Amazon.com at some point in the future.

The companies will combine tailored elements of Amazon.com's ecommerce platform for users of Shop@AOL on the AOL service, AOL.COM, CompuServe and Netscape.com, beginning in the 2002 holiday shopping season. In addition, Amazon.com will promote AOL as its exclusive ISP, allowing Amazon.com customers to download the AOL service from areas across Amazon.com. Amazon.com will also promote an online boutique offering a variety of AOL Time Warner products and services, including service subscriptions. The two companies have an existing promotional alliance under which Amazon.com is promoted across several America Online, Inc. brands, including AOL.COM, Netscape.com, and CompuServe.

``This is an excellent new relationship for our Platform Services Group,'' said Jeff Bezos, CEO and founder of Amazon.com. ``Amazon.com's ecommerce platform is a unique asset that we've spent more than six years refining. As our recent alliances with Borders and Toysrus.com reflect, we have a demonstrated ability to meet the specific business needs of leading companies. America Online is a true Internet pioneer and we're incredibly excited to be working with them.''