Amazon to buy LoveFilm
Amazon to buy LoveFilm - good news for film fans?
Online retailer Amazon.com is set to completely take over online DVD and game rental service Lovefilm.
Amazon’s current stake of 42% was acquired in 2008 but a deal said to be around the £200m mark sees the Seattle-based online retailer set to take full control.
Lovefilm Chief Executive Simon Calver gave the deal his full backing: "The deal is a winner for the members who love Lovefilm because of its value, choice, convenience and innovation in home entertainment,"
He added: "With Amazon's unequivocal support we can significantly enhance our members' experience across Europe."
Lovefilm started in 2002 and currently has 1.4 million subscribers in the UK alone. As a result, sales figures tripled in 2009 topping the £100m mark.
The decision to take full control could help ward off US rival Netflix who had hinted towards tapping into the European Market.
A spokesperson for the 16 million subscriber-strong company last December said: “"We're now talking about other regions in the world.
“Based on the early success of Netflix Canada, we're going to continue our international expansion next year and we're going to allocate significant dollars to it."