Online cosmetics retailer buys Eve.com assets

Sephora.com buys several assets, including the Web address and customer lists of the Idealab-backed beauty store that folded last month.

Stefanie Olsen Staff writer, CNET News
Stefanie Olsen covers technology and science.
Stefanie Olsen
2 min read
Online cosmetics retailer Sephora.com this week bought several assets of Eve.com, the Idealab-backed beauty store that folded last month.

The San Francisco-based company bought Eve.com's Web address, name and rights to use the company's customer list two times. Financial terms of the deal were not disclosed.

Launched in October 1999, Sephora.com is the online unit of beauty and fragrance retailer Sephora, a division of Moet Hennessey Louis Vuitton.

San Francisco-based Eve.com closed its doors Oct. 20 after failing to find additional funding for the company.

Idealab, which has backed such online companies as Ticketmaster Online-CitySearch and GoTo.com, took controlling interest in Eve.com in April to help the company expand. But ailing market conditions have forced many once-promising businesses to cut their work forces or close shop altogether.

A planned public offering from Idealab was abandoned last month under market pressures.

The online beauty market has proved to be a microcosm of wider consolidation in e-commerce. Earlier this year, Drugstore.com, funded partly by Amazon.com, bought Beauty.com in a stock deal worth $42 million. Estee Lauder, one of four major high-end manufacturers, bought Gloss.com in April and announced plans to open a multibrand site next year. And last month, Beautyjungle.com cut nearly 60 percent of its staff in an effort to reduce costs.

Through this week's agreement, Sephora.com bought the rights to use Eve.com's list of 460,000 customer names and email addresses twice. By selling rights to the list, Eve.com avoids privacy issues associated with selling it outright, according to a Sephora.com representative.

Sephora.com sent an email Tuesday promoting Sephora.com and plans to send a similar promotion in a few weeks. Visitors to Eve.com will be redirected to Sephora.com's site.