Amazon Shares Fall on News of Toys R Us Talks
Shares of Amazon.com Inc. fell 8% on a report that Toys R Us Inc. wants to reduce how much it pays the biggest Web retailer to operate its Internet sites.
Toys R Us has met with Amazon.com officials to discuss renegotiating a 10-year agreement for running the Toysrus.com and other Web sites, the Street.com reported. Both companies declined to comment.
The contract with Toys R Us provided the foundation for Amazon.com’s expansion into a new business in which it operates Internet sites for other firms, including order processing and shipping.
Toys R Us reported a fiscal fourth-quarter operating loss of $17million for the Toysrus.com unit.
Shares of Seattle-based Amazon.com declined $1.26 to $14.48 on Nasdaq. The stock has risen 34% this year.
Shares of Toys R Us slipped $1.38 to $18.93 on the New York Stock Exchange. They have fallen 8.7% this year.
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