The Wall Street Journal-20080205-Amazon to Sell Off European DVD Unit
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Amazon to Sell Off European DVD Unit
Full Text (138 words)Online movie-rental company LoveFilm International Ltd. said it will buy Amazon.com Inc.'s U.K. and German DVD-rental businesses.
In return, Amazon Europe will make an undisclosed investment in U.K.-based LoveFilm and become its largest shareholder, representing a shifting of gears for the U.S.-based online retailer in Europe's Internet movie-rental market.
LoveFilm also will benefit from a multiyear marketing agreement, with Amazon promoting LoveFilm's services on its Web site.
The move marks one of the rare times Amazon has exited from one of its businesses. It also highlights the increasingly competitive nature of the nascent online movie market in Europe. With Apple Inc. preparing to expand its online digital-movie service into international markets this year and Amazon planning to roll out its own MP3 music store internationally, the deal could see the two companies step up their rivalry in Europe.
