Glenn, lets get to the root of this rumor.<vgb>
>Last Update: 8:13 AM ET Mar 4, 2001
LONDON (FTMW) - The world's biggest online retailer, Amazon.com (AMZN: news, msgs, alerts) , is in secret strategic alliance talks with Wal-Mart (WMT: news, msgs, alerts) , the world's biggest 'bricks and mortar' retailer, Britain's Sunday Times newspaper reported.
Citing an unnamed executive close to the talks, the newspaper said the two groups were hammering out the details of an agreement that could be reached in six weeks.
The newspaper did not say how the deal would be structured or whether Wal-Mart would inject cash into the online retailer, which is struggling to make profits because of low margins and high debts.
Amazon's share price hit new 2 1/2 year lows last week as it denied rumours that it may be forced into bankruptcy proceedings. See previous story.
The newspaper said the deal would be a relief for Amazon's founder Jeff Bezos.
Deal not easy to do
"Jeff wants to build the biggest, best multi-category online retailer in the world," the unnamed executive was quoted as telling the newspaper.
"He has the technical expertise, but not the sales, the customers or the money any more. Wal-Mart has the sales, the expertise and the money, but it doesn't have the strong online presence," the executive said.
"It's a neat fit, but not one that will be easy to pull off," the executive said.
The newspaper said neither company would comment on the talks.
Bernard Hickey is a reporter for FTMarketWatch in London. |
