RUMOR MILL
This alliance spells further trouble for embattled online store CDNow, which is still reeling from a Barron's article predicting its imminent bankruptcy.
Tuesday, March 21, 2000
AMAZON, KOZMO.COM DELIVER
Will Net-To-Door Service Bring CDNow's House Down?
E-tailing champ Amazon.com has invested $60 million in Net-to-door deliverer Kozmo.com. Among other things, this means Amazon's customers can have the CDs, books and other merchandise they purchase online brought to their homes or businesses within an hour or so.
Aside from giving new meaning to the term "instant gratification," this alliance spells further trouble for embattled online store CDNow, which is still reeling from a Barron's article predicting its imminent bankruptcy. The company countered with a release saying the article was inaccurate, citing further funding.
Even so, CDNow stock has been plummeting faster than a despondent broker out of a high-rise, closing today at 4 13/16.
With immediate delivery available, Amazon should further cut into CDNow's base, though Amazon itself made Barron's list of 207 Net entities likely to run out of dough in the short term. After dipping to $64.19 yesterday, Amazon rallied to 73 3/8 by closing time on 3/21.
