Amazon is selling its U.K. and German DVD rental businesses to London-based LoveFilm, the companies said today. Amazon is also making a cash investment in LoveFilm and will become its biggest shareholder.
Financial terms not disclosed, but part of the deal is that Amazon will promote LoveFilm’s services on its U.K. and German sites, and that Amazon will continue to run the businesses “for a period of time” during the transition. When the deal closes, LoveFilm will have 900,000 customers in the U.K., Germany, Sweden, Norway, and Denmark. WSJ ($): Last year LoveFilm grew annual sales by 368% to £27.6 million (roughly $55 million). Release.
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