Amazon.com Inc. has plans to invest $10 million in a 16.6% stake in luxury goods merchant Ashford.com in a marketing agreement that starts immediately and will run through Dec. 31, 2000.
Seattle-based Amazon.com will get 7.4 million shares of Ashford.com, valued at $133 million. As part of the agreement, Ashford.com will offer special promotions and benefits to Amazon.com customers, and Amazon.com will include a link on its site to the luxury retailer beginning last Tuesday. The online bookseller will also feature Ashford in some of its promotions, such as the brochures found in the boxes that Amazon products are delivered in.
Amazon has expanded from just selling books into music, videos, auctions, toys, electronics, home improvement goods, software and greeting cards during the last 18 months.
Ashford, Houston, TX, sells diamonds, new and vintage watches, designer jewelry, fragrances, bath and body products, leather accessories, ties, scarves, sunglasses and writing instruments.
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