Lovefilm, the online DVD rental firm led by Simon Calver, has been put up for sale for an estimated £200m.
The company is one of the fastest-growing firms in the UK and has recently been the subject of a number of bid approaches.
Investment bank Jefferies is advising the firm on a possible sale, though discussions are reportedly focusing on new investors acquiring a majority stake rather than a full buy-out of existing shareholders.
At its launch, the firm was one of several entrepreneurial firms offering a similar service, including Video Island and Screenselect.
Lovefilm bought out its rivals and now has 1.2 million members, and currently accounts for more than half of all DVD rentals in the UK.
Last year, it acquired the European rental operations of Amazon for £63m.
As part of the deal, the internet retailer is a 32% shareholder in the company. The management team, led by Calver, the company’s chief executive, own 7% of the business, with the rest of the shares owned by venture-capital firms and business angels.
A report in The Sunday Times suggested a private-equity firm is the most likely buyer, with KKR and Silver Lake Partners understood to be in talks with the company.
Lovefilm’s latest accounts will show that the company generated around £73m of turnover, and Calver told Growing Business that turnover will breach £100m in 2009.
© Crimson Business Ltd. 2009