Amazon To Acquire LoveFilm

Amazon has made a bid to acquire European DVD rental service LoveFilm for £200 million.

According to a report published in the New York Times, Amazon already owns a 42 percent stake in LoveFilm after it sold its own DVD rental service to the company back in 2008 and bought out one of the rental service's venture capital backers.

Amazon, which is already the second largest online music retailer and the largest online bookseller will be looking to expand its European division by purchasing the popular DVD rental service.

Currently neither of the companies have authenticated the report.

Previously it had been reported in June 2009 that Lovefilm was looking for a buyer and had valued itself at £200 million, The Sunday Times had reported at the time.

Rumours from the US suggest that Amazon is supposedly pitching a Netflix-like on-demand video streaming service to major Hollywood studios.