The deal will allow Best Buy to tap into Amazon's vast customer network, marketing Amazon's technology to a wider array of shoppers. The TVs will also link up with Amazon's Alexa and Echo platforms.
"I've watched Best Buy for a long time, and the last five years, since Hubert [Joly] came to Best Buy, have been remarkable," Amazon CEO Jeff Bezos said. "I mean, the turnaround that got done there, from just a business case study point of view, is going be written about and talked about for a long time."
Best Buy said this summer it will launch more than 10 4K and HD Fire TV Edition models from Toshiba and Insignia, Best Buy's private-label brand. The TVs will be sold in Best Buy stores, online, and for the first time Best Buy will be a third-party seller on Amazon.com.
"This has been a partnership that has been going on for almost 10 years and makes complete sense," Best Buy CEO Hubert Joly said. The retailer has already been selling other Amazon products, such as the Echo, Kindle and Fire tablets, at its stores and on BestBuy.com.
For Amazon, Best Buy will be the exclusive retailer selling the new smart TVs. Joly has said the company aims to turn its stores into showrooms for the latest and greatest technology on the market.
Best Buy shares climbed more than 4 percent Wednesday afternoon, having gained over 50 percent from a year ago. Amazon's stock rose about 2 percent.
Shares of streaming provider Roku meanwhile fell more than 7 percent on the news. An Amazon-Best Buy tie-up entails TVs made by Best Buy's private label, Insignia, will no longer be powered by Roku's operating system.