Seattle – (NASD: AMZN) is in talks to acquire U.K.-based online
DVD rental service Lovefilm, in a deal that would value the firm at around $312
million, London’s Sunday Times reported, citing sources.

Seattle-based Amazon
already owns a 42% stake in Lovefilm, having merged its own European rental
unit with Lovefilm in 2008, and acquired shares from one of the company’s
venture capital investors.

Founded in 2002, Lovefilm now counts 1.2 million
subscribers across five countries.

Last February, the company followed Netflix
in offering a service that lets subscribers stream movies and TV shows.

Lovefilm backers include Arts Alliance Ventures, Balderton Capital, DFJ Esprit
and Index Ventures.


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