Barnesandnoble.com was reorganized in 1998 when German media conglomerate Bertelsmann AG agreed to invest $200 million in the online bookseller for a fifty percent interest. Barnesandnoble.com became a limited liability company (LLC) in order to operate online retail bookselling operations. As a result of Bertelsmann's investment, the bookseller postponed its planned initial public offering (IPO) until 1999. For 1998 barnesandnoble.com reported sales of $61.8 million and a net loss of $83.1 million.
Toward the end of 1998 barnesandnoble.com upgraded and redesigned its Web site, offering a wider range of products and services. It added electronic greeting cards through an agreement with Blue Mountain Arts. Rare and out-of-print books were offered through the Advanced Book Exchange, which had a network of some 3,600 book dealers. Also added to the Web site were enhanced search capabilities that allowed users to find related magazine and newspaper articles after searching for a book. Through an agreement with Northern Lights Technology, the articles could then be purchased electronically.
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