Nasdaq-listed online retailer Amazon has bought out the remainder of its shares in movie rental company Lovefilm for an undisclosed amount.
News provider Wall Street Journal said Amazon valued Lovefilm at about $320m but the cost was offset by its 42% holding. Greg Greeley, Amazon’s vice-president of European retail, said: "Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe’s DVD rental business in 2008, and we look forward to a productive and innovative future."
Lovefilm’s others investors include venture capital firms Index Ventures, DFJ Esprit and Balderton Capital, which came together after the 2006 merger of Video Island and Screen Select and rebranding as Lovefilm.
Amazon has become more active in corporate venturing after backing VC firm Kleiner Perkins Caufield & Byers’ $250m sFund and taking stakes in other companies, such as LivingSocial.
Earlier in the week, Amazon agreed to sell one million $20 gift cards at $10 each via LivingSocial after investing $175m in its portfolio company.