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Online DVD rental service considers £100m flotation
Lovefilm, Europe’s largest online DVD rental group, has appointed Goldman Sachs to advise it ahead of a possible £100 million flotation, reports Timesonline.
Both Apax, the private equity house, and DLJ Merchant Banking Partners, the investment arm of Credit Suisse, are thought to have cast an eye over Lovefilm. ITV and Virgin Media are also deemed potential trade buyers.
With operations in the UK, Sweden, Norway, Denmark and Germany, the business could be valued at about £100 million. Lovefilm has alreaddy signed up 500,000 subscribers who order films online which are then posted out with a prepaid return envelope. The online rental services generates more than five million postal transactions a month.
The group also offers an online download service which it sees as a candidate for sharp growth. It is also in talks to acquire Movielink, a Califonia-based online film downloading company.
In 2005 revenues from the combined Video Island/Love-film The group's revenue reached £25 million in 2005.
Story filed 11.03.07
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