Amazon swoops for Lovefilm

AMAZON is to buy the 58 per cent of DVD and games rental firm Lovefilm it does not already own for an undisclosed price.

Lovefilm has built a business around renting films such as Avatar, pictured above, by post and has also started streaming digital movies.

"Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe's DVD rental business in 2008," Greg Greeley, Amazon's vice president of European retail, said.

"It's a natural complement to our business because we already have the retail offer."

Amazon owned a 42 per cent stake in privately owned Lovefilm after combining its own European rental operation with Lovefilm in 2008 and through buying out one of the company's venture capital backers.