Amazon.com is entering the home furnishings and accessories category through a multimillion-dollar agreement with living.com
, an online home products and services retailer, which recently went public. Under the agreement, Amazon.com will receive $145 million from living.com over a five-year period in exchange for being the exclusive Home Living store, selling everything from furniture to bedding and home textiles. Amazon.com will acquire an 18% stake in the company, with options for another 9%. The deal is similar to partnerships Amazon.com has created with drugstore.com and Audible in an attempt to diversify its product offerings and enhance revenues.
Copyright February 2000, Crain Communications Inc.