Amazon.com Goes Domestic with living.com
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With the agreement, living.com will pay Amazon.com (AMZN) $145 million over five years in exchange for being the exclusive Amazon.com domestic store -- providing furniture, bedding and other related home categories for the giant e-tailer. Amazon.com will acquire an 18 percent stake in the company, with warrants for another 9 percent upon the transaction's closing. The firm will also have a seat on the living.com board of directors.
Amazon.com, who inked the deal just a day after taking a 5 percent stake in (ADBL) , said it believes the move will result in greater shopping convenience and selection for Amazon.com customers.
"This means that living.com will be the leading provider of home living products -- a $180 billion market -- on a valuable piece of e-tail real estate. Further, it puts on a fast track our plans to rapidly broaden our e-tailing offerings," said Shaun Holliday, chief executive officer of living.com.