Estimated Value: $200 million
Business: Online DVD rental company--the "Netflix of Europe"
Location: London, UK
More Info: About LoveFilm
CEO: Simon Calver
Investors: Amazon, Balderton Capital, Index Ventures, DFJ Esprit.
Analysis: LOVEFiLM is eating its European competition for lunch. Before being cleared to acquire Amazon's DVD rental business in the UK and Germany, Lovefilm already had 600,000 members to choose from its list of 65,000 titles. After the acquisition, Lovefilm should bring its membership up to 900,000 and control about 90% of the online DVD market.
We estimate that LoveFilm will do about $60 million in 2008 revenue (pre-Amazon). We apply a 3X multiple to estimate a value of $200 million.