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Borders is backing out of online book selling and will hand over its online business to Amazon.com, the companies announced Wednesday.

Amazon.com will relaunch Borders.com as a co-branded Web site. The site, scheduled to debut in August, will feature all books, music, video, and DVDs available at Amazon.com.

In addition, Borders.com will continue to have Borders information, such as a directory of the company's 350 stores as well as in-store event calendars, the companies announced at a news conference in New York. Amazon.com's Web site will continue to operate independently.

In September 2000, Amazon.com closed a similar deal with Toysrus.com, with the distinct difference that Toysrus.com handles the toys' inventory. Amazon.com will handle the full Borders.com inventory, the companies say.

Amazon and Borders said there is "no equity involved in the deal," and the companies declined to comment further on the economics of the agreement.

Approximately 70 people at Borders.com will be made redundant as a result of the deal, Borders Group President and Chief Executive Officer Greg Josefowicz says, adding that Borders will try to find positions for them elsewhere within the company.

Details on customers of the current Borders.com will not be shared with Amazon.com unless the customer has "opted in," a spokesperson for Amazon.com says.

Amazon.com does not yet know how many customers it is gaining, as the customer databases of both sites haven't been compared to determine overlap in customers.

Amazon.com and Borders said they will work together to offer new services, such as same-day delivery or reserving a book online for pickup in a store.

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