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This is what I've gathered through various press releases. According to Borders, leaving Amazon was their idea. They originally ran to Amazon when their own online sales efforts proved unprofitable.
Their new site has been under public beta for a while and really looks nice, with a browsing feature that makes it more like a pbookstore.
They're expanding their partnership with Sony, which will include a co-branded online bookstore. I'm assuming that will be something like borders.connect.com.
Borders is also going to be launching media stores that will include the ability to browse products in-store and buy them digitally.
These moves should start taking place in the first quarter of 2008.
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