Best Buy frets over Microsoft deal
C|Net | at | by Mike
Best Buy's relationship with Microsoft may be in jeopardy. The two companies have an advertising and profit-sharing agreement that expires in March, Best Buy said in its quarterly report filed Tuesday with the Securities and Exchange Commission. But Microsoft has told Best Buy that it intends to let the deal expire, Best Buy said.
"We are in negotiations with Microsoft to extend our alliance. If we are unable to extend our alliance with Microsoft or to replace it with a comparable (deal), future operating results could be affected," Best Buy said in its filing.
The two companies announced an alliance in December 1999. As part the agreement, which was signed in April 2000, Microsoft bought $200 million of Best Buy stock and agreed to promote the company's BestBuy.com online store on its MSN properties. In return, Best Buy agreed to promote Microsoft products, specifically MSN, in its stores and through print and broadcast ads.