US based online retail giant Amazon has confirmed today that is has reached an agreement to acquire the mail-order DVD & games company Lovefilm.
Amazon had a minority stake in the subscription entertainment service and has now agreed to buy the remaining shares in the company.
Lovefilm’s core business sees consumers receiving games and films through the post on a rental basis that can then be replaced by returning them to the company via freepost.
Greg Greeley, Amazon’s Vice President of European Retail, commented: “Lovefilm has been innovating on behalf of movie rental customers across Europe for many years and with the advent of the Lovefilm player, they are further delighting customers by streaming digital movies for their immediate enjoyment.
“Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe’s DVD rental business in 2008, and we look forward to a productive and innovative future.”
Subject to customary closing conditions, including regulatory approvals, the acquisition is expected to close in the first quarter of 2011.
Operating since 2004, Lovefilm now operates in the UK, Germany, Sweden, Norway and Denmark, offering rental, download and online streaming services.
Simon Calver, CEO of Lovefilm, said: “The deal is a winner for the members who love Lovefilm because of its value, choice, convenience and innovation in home entertainment.
“With Amazon’s unequivocal support we can significantly enhance our members’ experience across Europe.”