Amazon To Acquire LOVEFILM

Amazon has reached an agreement to acquire the remaining shares in LOVEFiLM International Limited, a European movie streaming and DVD rental service. The acquisition, whose terms were not disclosed, is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2011.

Similar to Netflix, LOVEFILM lets European consumers rent DVDs and video games through the mail, as well as through an online streaming service. It is available in the UK, Germany, Sweden, Norway and Denmark.

Amazon already owns a minority shareholding in LOVEFiLM. Greg Greeley, Amazon’s Vice President of European Retail had this statement: “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.”