Lovefilm management and founder net windfall after Amazon takeover
The management and founder of Lovefilm landed a blockbuster £7m windfall yesterday after selling the online movie rental service to Amazon.
The American web-based retail giant already owns 42pc of the firm, which has 1.2m members, but has agreed to buy the rest from its other shareholders, which include four venture capital firms and staff.
Founder William Reeve, who no longer has any role at the firm, will sell his 1.5pc stake for £3m.
In the money: Lovefilm chief executive Simon Calver has a 1pc stake worth £2m
Chief executive Simon Calver and chairman Charles Gurassa, who was previously at the helm of Virgin Mobile, each have a 1pc stake worth £2m each.
The website, which has been sold for what is thought to be £200m, works by sending members, who take out a subscription, DVDs and http://lostfilm.hd-lostfilm.net games through the post.
It also streams movies or TV shows to their computers or TVs. It will continue to operate under its own brand.
Amazon sold its European DVD rental arm to Lovefilm in 2008, which is when it became a shareholder in the business.