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AOL, 1-800-Flowers.com, renegotiate their agreement

Published on .

Online florist 1-800-Flowers.com renegotiated its agreement with America Online, striking a new, five-year, $22.1 million interactive marketing deal that extends their original e-commerce partnership for two more years through August 2005. The new deal, effective Oct. 1, replaces the existing four-year, $42 million agreement that was agreed to just over a year ago. Under the terms of the new partnership, 1-800-Flowers.com keeps its position as exclusive purveyor of fresh-cut flowers across AOL properties. 1-800-Flowers.com will now pay AOL $22.1 million over five years. Other portals and e-tail sites are being forced to accept less money in marketing deals from their e-commerce partners. Amazon.com recently announced that it had renegotiated with several of its preferred partners.

Copyright September 2000, Crain Communications Inc.

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