Amazon.com Announces Investment in Pets.com
PR Newswire - March 29, 1999 10:15
Leading Online Retailer and Hummer Winblad Venture Partners Help Finance the Internet's Largest Pet Supply Store
SEATTLE, March 29 /PRNewswire/ -- Amazon.com (Nasdaq: AMZN), the Internet's No. 1 video, No. 1 music, and No. 1 book retailer, today announced that it has agreed to obtain an ownership stake of approximately 50% in Pets.com (http://www.pets.com), the largest pet company on the Internet. Amazon.com joined with venture capital firm Hummer Winblad Venture Partners to fund Pets.com's first round of financing. The transaction is expected to be completed in early April and is subject to execution of definitive documents and customary closing conditions.
In 1998, the pet category, comprised of products and services, was $23 billion in the United States, according to the Pet Industry Joint Advisory Council. The financing will be used to fund Pets.com's growth, further develop the Pets.com brand, expand e-commerce and advertising revenue streams, and build distribution through partnerships and alliances. Upon completion of its investment, Amazon.com will own approximately 50% of outstanding shares.
"We invest only in companies that share our passion for customers," said Jeff Bezos, Amazon.com founder and CEO. "Pets.com has a leading market position, and its proven management team is dedicated to a great customer experience, whether it's making a product like a ferret hammock easy to find, or help in locating a pet-friendly hotel."
"This is a marriage made in heaven and clearly positions us as the online category leader," stated Julie Wainwright, CEO of Pets.com. "The successful investment track record represented by Amazon.com and Hummer Winblad really makes this a CEO's dream team."
About Pets.com
Pets.com (http://www.pets.com) is the largest pet-oriented company on the Internet, specializing in popular and rare pet accessories, products, and food for all types of animals. It was founded by established Internet entrepreneurs Greg McLemore and Eva Woodsmall in 1998.
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