While the details of the deal weren’t disclosed, reports in the Telegraph earlier this month suggested the offer from Amazon valued Lovefilm at around £200m.
Amazon has had a significant stake in Lovefilm since 2008, when Lovefilm bought Amazon’s fledgling DVD-rental service. In return, Amazon acquired a 42 per cent stake in Lovefilm.
Lovefilm has notched up 1.4m members across Europe since its launch in 2004, has growing in Germany and Scandinavia and tripled sales in 2009 to around £100m. CEO Simon Calver called the deal a “winner” for Lovefilm members, who will benefit from better service thanks to “Amazon’s unequivocal support”.
The acquisition is subject to European regulatory approvals, and is expected to close in the first quarter of 2011.
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