July 13, 2011 / 2:09 PM / in 6 years

UPDATE 1-Amazon to offer cheaper Kindle, sponsored by AT&T

NEW YORK, July 13 (Reuters) - Amazon.com Inc (AMZN.O) said on Wednesday it has struck a sponsorship deal with AT&T Inc (T.N) to sell a less expensive version of its Kindle 3G digital reader.

Amazon’s Kindle 3G, which allows users to buy electronic books without having to subscribe to a wireless network, costs $189. The AT&T sponsored device, which will also include built-in ads on its screensavers, will cost $139.

Amazon in April introduced built-in advertising from companies such as General Motors Co’s (GM.N) Buick, Procter & Gamble Co’s (PG.N) Olay, and Visa Inc (V.N), on a different version of the Kindle, which competes with devices such as Barnes & Noble Inc’s (BKS.N) Nook and Apple Inc’s (AAPL.O) iPad tablet. (Reporting by Phil Wahba, editing by Gerald E. McCormick)

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