Internet giants Dell Computer and Amazon.com will co-market their products on joint Web sites, the companies said Wednesday.
Seattle-based Amazon.com (AMZN) is the first company Dell (DELL) has linked to from its www.dell.com site, and Dell is the first computer systems company Amazon.com has linked to, the companies said.
Shares of Amazon rose 7 3/4 to 129 15/16 on Tuesday ahead of the deal. Dell dipped 1 5/16 to 44 1/16.
Both companies are launching links from the checkout sections of their respective sites that lead to new, co-branded Dell and Amazon.com home pages.
"Dell and Amazon.com have a shared vision of the future of online shopping," Michael Dell, chairman and CEO said in a statement. "That vision is to use the Web to deepen direct relationships with customers and deliver unique value and unparalleled service. Dell and Amazon.com will each offer our mutual customers customized services, competitive price, and easy navigation."
"It's natural for our companies to begin to work together to provide customers with enhanced benefits," said Jeffrey Bezos, Amazon.com founder and CEO.
The move by Dell follows its launch of www.gigabuys.com, an online superstore for computer-related products. The Amazon.com deal "is further evidence of the company's commitment to expand its Web offerings," the companies said.
Dell now sells more than $14 million in products each day over the Web, about 25 percent of its business. Dell plans to have 50 percent of its business online by the end of 2000.
Written By Steve Gelsi, CBS MarketWatch