Amazon to Acquire LOVEFiLM International LimitedBy Amazon.com Inc., PRNE
Wednesday, January 19, 2011
LUXEMBOURG CITY and LONDON, January 20, 2011 - Amazon.com, Inc. (NASDAQ: AMZN) today announced that it has reached an
agreement to acquire the remaining shares in LOVEFiLM International Limited
(www.LOVEFiLM.com). LOVEFiLM is a leading European subscription
entertainment service which combines the benefits of online DVD and games
rental-by-post as well as streaming films and TV shows instantly over the
internet to PCs, internet enabled TVs and Playstation(R)3. LOVEFiLM operates
today in the UK, Germany, Sweden, Norway and Denmark. Amazon already has a
significant minority shareholding in LOVEFiLM and does not itself operate any
similar business in Europe.
"LOVEFiLM has been innovating on behalf of movie rental customers across
Europe for many years and with the advent of the LOVEFiLM player, they are
further delighting customers by streaming digital movies for their immediate
enjoyment," said Greg Greeley, Amazon's Vice President of European Retail.
"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."
"The deal is a winner for the members who love LOVEFiLM because of its
value, choice, convenience and innovation in home entertainment," said Simon
Calver, Chief Executive of LOVEFiLM International. "With Amazon's unequivocal
support we can significantly enhance our members' experience across Europe."
The acquisition is subject to customary closing conditions, including
regulatory approvals, and is expected to close in the first quarter of 2011.
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle,
opened on the World Wide Web in July 1995 and today offers Earth's Biggest
Selection. Amazon.com, Inc. seeks to be Earth's most customer-centric
company, where customers can find and discover anything they might want to
buy online, and endeavors to offer its customers the lowest possible prices.
Amazon.com and other sellers offer millions of unique new, refurbished and
used items in categories such as Books; Movies, Music & Games; Digital
Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby;
Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and
Tools, Auto & Industrial. Amazon Web Services provides Amazon's developer
customers with access to in-the-cloud infrastructure services based on
Amazon's own back-end technology platform, which developers can use to enable
virtually any type of business. Kindle, Kindle 3G and Kindle DX are the
revolutionary portable readers that wirelessly download books, magazines,
newspapers, blogs and personal documents to a crisp, high-resolution
electronic ink display that looks and reads like real paper. Kindle 3G and
Kindle DX utilize the same 3G wireless technology as advanced cell phones, so
users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling
product across the millions of items sold on Amazon.
Amazon and its affiliates operate websites, including
www.amazon.com, www.amazon.co.uk, www.amazon.de,
www.amazon.co.jp, www.amazon.fr, www.amazon.ca,
www.amazon.cn, and www.amazon.it. As used herein, "Amazon.com,"
"we," "our" and similar terms include Amazon.com, Inc., and its subsidiaries,
unless the context indicates otherwise.
This announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Actual results may differ significantly from
management's expectations. These forward-looking statements involve risks and
uncertainties that include, among others, risks related to competition,
management of growth, new products, services and technologies, potential
fluctuations in operating results, international expansion, outcomes of legal
proceedings and claims, fulfillment center optimization, seasonality,
commercial agreements, acquisitions and strategic transactions, foreign
exchange rates, system interruption, inventory, government regulation and
taxation, payments and fraud. More information about factors that potentially
could affect Amazon.com's financial results is included in Amazon.com's
filings with the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K and subsequent filings.
LOVEFiLM International was formed from the merger of two leading VC
backed DVD rental companies in Europe. The first, LOVEFiLM formed in early
2004 when Arts Alliance Media acquired and rebranded DVDs On Tap and later
acquired Boxman.se and Digitarian.dk. The second, Video Island - originally
formed in 2003 by Redbus Group - backed by Balderton, Index and DFJ Esprit
merged with ScreenSelect Ltd (also founded in 2003), and acquired Brafilm.se
and Brafilm.no. The 50/50 merger between the two companies in 2006 was
followed in 2008 by LOVEFiLM International's acquisition of Amazon's UK and
German online DVD rental customer base.
What we do
In a little over seven years, LOVEFiLM has become a leading
European film subscription service, combining the benefits of DVD rental
by post and, more recently, watching movies online via the LOVEFiLM
Player (on the PC, the PlayStation(R)3 and streamed direct to TV).
Customers choose from a selection of over 70,000 titles available across
Blu-ray, DVDs, video games and digital streaming. LOVEFiLM currently has
nearly 1.6 million members and operates in the UK, Germany, Sweden,
Denmark, and Norway.
LOVEFiLM has been a pioneer in digital film delivery in the
UK since launching the first download to own movie in April 2006. The
LOVEFiLM Player launched in March 2010 and offers thousands of digital
titles available for members to watch on their TV, PC or PlayStation(R)3.
For those on an Unlimited or capped package the service comes at no extra
cost. Premium titles are available to everyone on a pay-per-view basis,
and a number of titles are available to all site visitors for free with
LOVEFiLM is also available through a range of
internet-enabled devices - including Sony, Samsung and PS3(TM) - taking
LOVEFiLM directly into members' living rooms through their TV sets.
LOVEFiLM customers have generated 80 million film ratings and
written 843,000 member reviews - information which helps LOVEFiLM to
promote the most relevant titles for its customers to choose from.
LOVEFiLM offers a range of rental options in each market with
free postage and no late fees. In the UK these include GBP4.99 a month
allowing members to have one DVD at a time (limit of two per month. Does
not include online viewing), GBP5.99 a month for one DVD at a time (limit
of three per month plus 2 hours online viewing ), GBP7.99 for two DVDs at
a time (limit of four per month plus 4 hours online viewing), GBP9.99 a
month for one DVD out at a time (Unlimited DVDs by post and online
viewing), GBP12.99 for two at a time (Unlimited DVDs by post and online
viewing) and GBP15.99 gives the option for three DVDs at a time
(Unlimited DVDs by post and online viewing). Members on an Unlimited
package have access to the LOVEFiLM Player at no extra cost.
LOVEFiLM also offers a range of video games rental options in
the UK market to support gaming across XBox 360, Xbox, PS3, PS2, Wii and
DS. These include GBP5.99 a month for one disc at a time (limit of three
per month. Does not include online viewing), GBP9.99 a month for two
discs at a time (limit of three per month plus 4 hours online viewing),
GBP14.99 a month for two discs at a time (Unlimited discs by post and
online viewing) and GBP18.99 for three discs at a time (Unlimited discs
by post and online viewing), all with free postage and no late fees.
For further information please contact: Amazon Ben Howes +44(0)20-8636-9280 email@example.com Christine Hoeger +49(0)89/358-03-530 firstname.lastname@example.org LOVEFiLM UK Financial and Business: M Communications Ben Simons (+44(0)20 7920 2340) (email@example.com) UK Trade and Consumer: Mischief Dan Glover (+44(0)20-7841-6672) (Dan.Glover@mischiefpr.com) Germany: S&L Medianetworx GmbH Nadine Klaunig (+49(0)89-236849-746) (firstname.lastname@example.org) Sweden Hallvarsson & Halvarsson Martin Hedensiö (+46-709-711268) (email@example.com) Norway First House Per Bjørkum (+47-922-55-777) (firstname.lastname@example.org) Denmark Communique Michael Buksti (+45-3698-3400) (email@example.com)
For further information please contact: Amazon Ben Howes, +44(0)20-8636-9280, pressoffice at amazon.co.uk; Christine Hoeger, +49(0)89/358-03-530, presse at amazon.de; LOVEFiLM: UK Financial and Business: M Communications, Ben Simons (+44(0)20-7920-2340), (simons at mcomgroup.com); UK Trade and Consumer: Mischief, Dan Glover (+44(0)20-7841-6672), (Dan.Glover at mischiefpr.com); Germany: S&L Medianetworx GmbH, Nadine Klaunig (+49(0)89-236849-746), (nklaunig at medianetworx.de); Sweden Hallvarsson & Halvarsson, Martin Hedensiö (+46-709-711268), (martin.hedensio at halvarsson.se); Norway First House, Per Bjørkum (+47-922-55-777), (per.bjorkum at firsthouse.no); Denmark Communique, Michael Buksti (+45-3698-3400), (mb at communique.dk)
Tags: Amazon.com Inc., January 20, Luxembourg, Luxembourg City And London, United Kingdom