To buy 58% of DVD rental and online video business for undisclosed sum
Amazon has taken full control of DVD rental and online video business firm Lovefilm.
The online retailer had bought a 42% stake in Lovefilm in 2008. It is now in a deal to buy the remaining 58% for an undisclosed sum, reported the Guardian.
Lovefilm, a DVD rentals business, was launched in the UK in 2004. It now has 1.4 million subscribers across Europe.
The company operates in five European countries: the UK, Germany, Sweden, Denmark and Norway.
Lovefilm chief executive Simon Calver said Amazon’s support for the company can enhance their members’ experience.
Lovefilm tripled its sales in 2009 to almost £100m. In March 2010, the company launched its digital streaming service.
Amazon vice-president of European retail Greg Greeley said Amazon’s initial plan for Lovefilm is to continue to expand its presence on internet-connected devices with Lovefilm’s European base to complement its own existing US-only video on demand offering.
Greeley, however, added that physical DVD rentals will remain an important part of Lovefilm’s service.
The acquisition is expected to close in the first quarter of 2011.