Online business firm, Amazon has bought out Lovefilm. com for £200million. Lovefilm is into the business of movie rentals. Post this, Amazon will have majority stake in the company in which it already had a share of 42 per cent since 2008.

The remaining 58 per cent is also a part of it now and will be catering to 1.6 million customers during this time. For a company that showed a revenue of £97 million alone in 2009 and suffered a loss of nearly £1 million, the deal comes as a golden opportunity.

After bad financial, it decided to launch a movie rental business online and has shown a growth of 30-40 per cent during this time.

Meanwhile, Amazon has bought the stake from Balderton and Index Ventures who had 10 per cent stake, while Arts Alliance and DJF Esprit were in charge of roughly 8 per cent each.

The remaining stake is owned by angel investors and management of the company. And sources close to the development have said that the shareholders are happy with the kind of return they are getting.