Online retailing giant Amazon.com is joining forces with arch-rival Borders Group Inc, an Amazon source said.
According to the source the alliance will be announced today in New York at a morning press conference.
Borders will "opt out" from the book-buying business and their real-world stores will promote the Amazon site that sells books, CDs, and a host of other consumer goods, the source added.
On Monday Amazon - a bellwether company for the Internet retailing chain - said its fourth quarter losses were going to be smaller than expected, sending its stock up 34 per cent that day.
Amazon shares closed yesterday on NASDAQ at $12.01, up 7.4 per cent. The shares reached a 52-week peak of 68 dollars last May.
Borders shares were unchanged at close of business yesterday.
Borders had tried to compete against Amazon in the online book-selling sector for a number of years and has incurred heavy losses as a result.
Also yesterday Seattle-based Amazon struck a deal with Adobe Systems to offer Adobe's digital book-reading software through the online retailer.
AFP