Amazon.com Buys 46% of Drugstore.com

Share this content:
Web bookseller and Internet commerce bellwether Amazon.com Inc. broadened its product base by buying 46 percent of drugstore.com, a start-up online drugstore whose e-commerce site went live Feb. 25.


Drugstore.com, Redmond, WA, sells more than 15,000 brand-name healthcare products through www.drugstore.com and features an online pharmacy as well. Peter Neupert, president/CEO of the Redmond, WA, company, formerly held a senior executive post at neighboring software giant Microsoft Corp. Amazon did not disclose terms of the deal. The Seattle company has had abundant capital on hand since raising $1.25 billion in a junk bond offering in late January.


Following the announcement, securities firm BancBoston Robertson Stephens raised its recommendation on Amazon stock to a strong buy rating from a buy rating.


"The investment in Drugstore.com represents Amazon's first move into an exciting new product category and demonstrates its ability to secure new tenants," said Keith Benjamin, Robertson Stephens' managing director and senior Internet analyst.


Drugstore.com employs licensed pharmacists who can give consumers advice over the phone, and the company will send intermittent e-mails reminding customers to restock on their regularly used drugs. Drugstore.com struck a deal to be the dominant online drugstore sponsor on Excite Inc.'s www.excite.com portal and the company arranged banner ads on Yahoo! Inc.'s health-related site. Drugstore said it will be a "key pharmacy partner" in America Online Inc.'s health area.
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above