Europe’s LoveFilm acquires Amazon’s DVD rental business in U.K. and Germany
London-based LoveFilm International Ltd., which operates an online DVD rental business in several European countries, is acquiring Amazon.com Inc.’s DVD rental business in the U.K. and Germany. Amazon Europe, based in Luxembourg, will become LoveFilm’s largest shareholder with a cash investment and promote LoveFilm’s business on its U.K. and German e-commerce sites, Amazon says. Other terms were not disclosed.
"As one of Europe`s largest online DVD rental businesses, LoveFilm is well established to serve customers` increasing demand for entertainment," says Greg Greeley, Amazon`s vice president of European retail. "Our investment will enable LoveFilm to grow the business further and we are excited to be part of their future."
Amazon Europe will continue to operate its U.K. and German DVD rental business during a transition period and plans no staff reductions as a result of the transaction, Amazon says.
When the deal is complete, LoveFilm will have more than 900,000 subscribers, mostly in the U.K. and Germany but also in Sweden, Norway and Denmark, the companies said. The transaction is subject to regulatory approvals in the U.K. and Germany.
Amazon.com is No. 1 in the Internet Retailer Top 500 Guide.
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