It looks like Amazon, which now owns just under a third of Lovefilm in the UK (and merged it with its UK and German DVD rental businesses last year), and the remaining shareholders consisting of Arts Alliance Media, Index Ventures, Balderton Capital, DFJ Esprit and company management all want a “liquidity event”. In others words, they probably want to sell LoveFilm. It’s clear Netflix in the US would be a natural fit, as hinted in the FT.
A spokesperson told has told PaidContent: “We can confirm Lovefilm has received approaches and the board is considering options on on behalf of the group and its shareholders.” Investment bank Jeffries has been appointed on the deal.
And although the word is that “discussions are focusing on new investors acquiring a majority stake rather than a full buy-out of existing shareholders” to be honest it’s a moot point – it’s anything that would give the existing shareholders the “liquidity event” they almost certainly desire.