Amazon buys Lovefilm

Amazon.com Inc., the largest online retailer, agreed to buy the remaining shares of Lovefilm International Ltd., a European DVD and online film-rental company.

Lovefilm has a rental-by-post offering and also streams films and television shows over the Internet to personal computers, Internet-enabled television sets and game consoles, the companies said in a joint statement today. Amazon said it already has a “significant minority” shareholding in Lovefilm and doesn’t operate any similar businesses in Europe.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2011. Lovefilm operates in the U.K., Germany, Sweden, Norway and Denmark.  Terms of the deal weren’t disclosed.