Amazon normally doesn't say a damn thing in the middle of talks with another party, but Hatchette's PR antics over the Memorial Day weekend elicited a response.
There three main points in Amazon's statement that are very subtle:
1) Amazon will no longer warehouse Hatchette's books for free. They will order books on a case-by-case basis.
2) Hatchette is only 1.1% of Amazon's business while Amazon is 20% of Hatchette's.
3) Amazon offered to match funds Hatchette puts into a pool for authors harmed by the current negotiations. And supposedly, Amazon made the same offer to Macmillan four years ago,
Hatchette's executives and attorneys don't seem to understand that they cannot force a retailer to carry their product. Also, I'm beginning to wonder if Hatchette's sales from Amazon aren't a lot more than 20%. That's what happens when you're the test case after you're off probation.
[Edit to add: Hatchette has responded. IMHO, fighting this battle in public is not Hatchette's best tactic.]
[2nd edit to add: A Hatchette memo was leaked to Digital Book World. Barry Eisler and Joe Konrath royally fisk the hell out of it.]