In 2008 fledgeling DVD rental company LOVEFiLM acquired Amazon Europe’s rental business in the UK and Germany. Now that the business has grown Amazon have agreed to buy the entire company. LOVEFiLM operates today in the UK, Germany, Sweden, Norway and Denmark.
The press release states that Amazon retained a significant minority (42%) shareholding in LOVEFiLM and acknowledges that Amazon no longer operates any similar business in Europe.
As well as offering a traditional DVD rental service which LOVEFiLM operates through postal services customers can also opt to stream DVD rentals over their Internet broadband connection for a monthly subscription. More recently they also added a games rental service.
LOVEFiLM appear happy with the deal, and so they should – having received significant investment and growth from their dealings with Amazon they’ve now cashed in to the same company. “The deal is a winner for the members who love LOVEFiLM because of its value, choice, convenience and innovation in home entertainment,” said Simon Calver, Chief Executive of LOVEFiLM International. “With Amazon’s unequivocal support we can significantly enhance our members’ experience across Europe.”
One Response
Great result for LoveFilm, and good news for UK tech companies.