Amazon ‘set to make Lovefilm buyout offer’

Internet retail giant Amazon is circling Lovefilm in a deal that could value the movie rental service at nearly £200 million, it was reported. The books-to-electronic-goods retailer is understood to be carrying out due diligence on the business that is...

Internet retail giant Amazon is circling Lovefilm in a deal that could value the movie rental service at nearly £200 million, it was reported.

The books-to-electronic-goods retailer is understood to be carrying out due diligence on the business that is expected to lead to a buyout offer being made during the next few months, according to the Sunday Times newspaper.

Takeover talks are understood to have gathered pace when Lovefilm started to consider a stock market flotation.

Amazon already holds a 42 per cent stake in Lovefilm following a tie-up with its European film rental business in 2008.

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