Amazon.com, Toys 'R' Us link

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Amazon.com, Seattle, and Toys "R" Us, Paramus, N.J., on Aug. 10 announced a Web site collaboration providing Amazon.com with cash and Toysrus.com with needed Web cachet. Under the new arrangement, visitors to Toysrus.com will land at the Amazon.com toy site, where orders will be handled and filled. Toysrus.com's Babiesrus.com site, announced on July 24, similarly will be moved into the Amazon.com fold next year. Toys "R" Us has been stumbling with its online efforts, missing holiday deliveries last season and this summer being sued by customers for privacy violations. With the new pact, Amazon gets needed cash - a fixed payment, a payment for each toy sold and a percentage of all revenue. An Amazon spokeswoman said it's was too early to determine the deal's impact on agencies for the two companies. Amazon.com's agency is FCB Worldwide, San Francisco. Toysrus.com recently selected D'Arcy Masius Benton & Bowles, Los Angeles, as its agency following a lengthy review. Leo Burnett USA, Chicago, handles Toys "R" Us' main stores. Toys "R" Us at midday Aug. 10 was trading at $17.69, up 31 cents. Online rival eToys, meanwhile, hit an all-time low, trading below $4 a share at midday.

Copyright August 2000, Crain Communications Inc.

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