Amazon Forges Cross-Marketing Deal With Luxury Site (Nasdaq: AMZN) announced today that it will make a minority investment in luxury goods retailer (Nasdaq: ASFD) and that the two companies have agreed on a multimillion-dollar (US$) marketing initiative.

In exchange for a $10 million investment and the marketing agreement, will receive approximately 16.6 percent of’s outstanding stock.

Under the terms of the marketing deal, which starts immediately, will offer a selection of its products directly to’s 13 million customers. The deal will last through December 31, 2000. will offer special promotions to’s customers.

“We chose to work with because it offers customers an excellent online experience, outstanding value and a great selection of watches, jewelry, leather goods and other luxury items,” said Amazon CEO Jeff Bezos. Also Has Deal With Yahoo!

Amazon will feature products in multiple luxury categories, such as diamonds, watches and writing instruments. also offers products such as designer jewelry, sunglasses, and bath and body products for more than 300 brands.

In October, announced that it had become a premier merchant on Yahoo!. Under the terms of that deal, will be featured on Yahoo!’s shopping channel and e-mail service. will also run banner advertising throughout Yahoo!’s network of properties. Branching Out With Equity Investments

Earlier this year,, which seems intent upon spending whatever it takes to turn itself into an all-everything, one-stop shop, made other notable investments in specialty retailers such as and also recently acquired tools and home-improvement equipment company Tool Crib of the North in order to launch a new home-improvement area.

Other companies that has invested in include gift registry service Della & James, sporting goods retailer, and, the online grocer that has former Netscape CEO Jim Barksdale on its board of directors. Gets Good Deal

Shares of climbed 3/4 to 85-13/16 in early trading today, and shares of climbed 5 to 23. The deal appears strong for because, at $23 a share, is worth nearly $848 million. Accordingly,’s 16.6 percent stake is worth more than $140 million, even though the company is only investing $10 million. went public at $13 a share in September, becoming the only publicly-traded company that focuses on luxury products. stock barely moved on its first week of trading, but has climbed as high as 35 in recent trading sessions.

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