Amazon.com (AMZN) Takes the Plunge, Acquires All of Lovefilm (NFLX, SNE)
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According to several reports, Amazon.com (Nasdaq: AMZN) has acquired the remaining 58% of British film rental firm, Lovefilm.
The acquisition was made for an undisclosed sum, according to people familiar with the matter. The WSJ said their contacts value the balance of the company at £200 million ($320 million), with a total enterprise value of £344 million ($550 million).
Lovefilm offers a similar setup to Netflix (Nasdaq: NFLX). They primarily focus on rentals via post, but have forayed into the online streaming movie segment, specifically over Sony's (NYSE: SNE) Playstation 3 gaming console, and IP TV sets made by Sony and Samsung.
Lovefilm has about 1.6 million members in the U.K., Germany, Sweden, Denmark, and Norway. The company has over $100 million in annual revenues. Their catalog contains about 70,000 movies and games.
Shares of Netflix are trading 2.4% lower this morning.
The acquisition was made for an undisclosed sum, according to people familiar with the matter. The WSJ said their contacts value the balance of the company at £200 million ($320 million), with a total enterprise value of £344 million ($550 million).
Lovefilm offers a similar setup to Netflix (Nasdaq: NFLX). They primarily focus on rentals via post, but have forayed into the online streaming movie segment, specifically over Sony's (NYSE: SNE) Playstation 3 gaming console, and IP TV sets made by Sony and Samsung.
Lovefilm has about 1.6 million members in the U.K., Germany, Sweden, Denmark, and Norway. The company has over $100 million in annual revenues. Their catalog contains about 70,000 movies and games.
Shares of Netflix are trading 2.4% lower this morning.
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