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Amazon announces acquisition of LOVFiLM

News by Stephany Nunneley-Jackson News Editor

Published on Jan. 20, 2011

Amazon has announced it's acquired Europe's DVD-rental service LOVEFiLM for an undisclosed amount.

Speaking with VentureBeat, Balderton Capital's Dharmash Mistry -a main investors in LOVEFiLM - has said the reason Amazon went ahead with a full purchase was due to LOVEFiLM's streaming service. With 20 percent of the service's movies available digitally and the growing popularity of Internet enabled TVs, Amazon jumped on the opportunity.

Amazon never mentioned the figure it posted on the check, but $200 million is the current rumor. Before the purchase, Amazon owned a 42 percent share in the company.

The firm plans to leave the LOVEFiLM site live, but if Amazon has any other plans for the service, it was not disclosed.

Other investors in LOVEFiLM include: Arts Alliance Media, Esprit Capital Partners and Index Ventures.