Amazon purchases LoveFilm
Amazon has completed business negotiations to buy LoveFilm.
Business negotiations between online store Amazon and film and game subscription firm LoveFilm have ended with a deal thought to be worth about £220 million.
Amazon will add to its existing stake in the company by purchasing 58 per cent of the company, reports Sky News.
Chief executive of LoveFilm Simon Calver said on Jeff Randal Live: "The key thing is to look at the growth we're showing as a business, which has been quite considerable year on year."
He added that last year the firm made an operating profit and that the company is still delivering cash, despite accounts showing LoveFilm making a pre-tax loss.
Under the new deal, Amazon will hold 100 per cent of the shares in the company and could help the organisation to compete with rival online rental firm Netflix, which dominates the streaming market in the US.
This comes after the Guardian reported that orthopaedic specialist Smith and Nephew is rumoured to be facing a merger with either Biomet or Johnson & Johnson.