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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.55+0.2%Dec 5 9:30 AM EST

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To: H James Morris who wrote (147095)9/9/2002 9:52:21 AM
From: Alomex  Read Replies (1) of 164684
 
Expedia vs. Amazon

Typically, this type of overpriced web ad content gets renegotiated. The parties agree to lower the monthly payments in exchange for a much longer commitment. It is a win-win situation, when done properly. Generally the contract has larger net value (which would be good for Amazon) while the monthly payments go down (which would be good for Expedia).

That an agreement couldn't be reached is very telling.... In all likelihood it means Expedia considered the front page listing worth very little, and offered a pittance to extend the contract. Amazon, which is scrounging for cash would rather take the $16mill this year, and work something out later.
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