Online retail giant Amazon is reportedly closing in on a deal to buy Lovefilm which could value the movie rental service at nearly £200 million.
Amazon is understood to be carrying out due diligence on the movie rental service that is expected to lead to a buyout offer being in the next few months, according to the Sunday Times.
The etail giant already has a 42% stake in Lovefilm following a tie-up with its European film rental business in 2008.
Takeover talks are understood to have gathered pace when Lovefilm started to consider a stock market flotation.
Lovefilm has more than 1.4 million members across Europe. In exchange for a monthly fee, users can select films and games from the group’s library of 70,000 titles.
No comments yet