Amazon buys Lovefilm

Amazon confirmed today that it is to buy out the remainder of UK-based film and game rental service Lovefilm.

The company already owns 42 percent of Lovefilm, which is bought in 2008, but it will now acquire the remaining 58 percent

The acquisition was rumoured as far back as September of last year, but neither company would confirm that they were in talks at the time.

The deal was welcomed by a number of key Lovefilm investors, including Balderton Capital, DFJ Esprit and Index Ventures, according to Reuters.

Lovefilm was established in 2002 as Online Rental Limited, renaming to Lovefilm at the end of 2003. A number of acquisitions made it one of the main players in the online rental game in the UK and Europe, earning it close to 1.6 million subscribers. The acquisition by Amazon, coupled with a recent deal with Sony to launch its service on PlayStation 3, will likely increase Lovefilm’s success even further.

Financial details of the transaction were not revealed, but early rumours suggested the price would be in the region of £200 million ($398 million).