RealTime IT News

More Evolution in the Pet Space

Pets.com Inc. , which is in the process of going out of business, signed a non-binding letter of intent to sell various URLs and related trademarks including the Pets.com domain to PETsMART.com.

Effective immediately, typing the pets.com URL into a browser will take users to the PETsMART.com Web site. The purchase price was not disclosed.

The transaction will not include any other operating assets of Pets.com, such as its customer list, Sock Puppet character, inventory or distribution center equipment, the company said.

On Nov. 7, the San Francisco, CA-based company said it would lay off 225 of its 320 employees and plans to sell the majority of its assets, including inventory, distribution center equipment, URLs, content and its Sock Puppet icon as well as other intellectual property. The company's stock had slipped below $1.

Pets.com said it "believes the purchase price will not materially increase the distributions, if any, which Pets.com expects to make in the future to its stockholders after it has completed the process of winding down its business and selling a majority of its assets."

Pet products retailer PETsMART Inc., which operates more than 530 pet superstores in the United States and Canada, recently said it will pay $30 million in cash and assets for a controlling interest in online pet operation PETsMART.com.

Founded in May 1999 as a privately held company, PETsMART.com has been funded by PETsMART and other investors, including idealab!, idealab Capital Partners and Global Retail Partners, as well as Big Dog Holdings Inc.