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Amazon (NSDQ: AMZN) paid less than some recent reports suggested for the rest of Lovefilm.
The £200 ($318.51) million quoted by many was actually the total company valuation. Amazon already held about 40 percent since 2008. What it bought this month was the remaining 60 percent – for, we understand, about £120 ($191.1) million.
A statement buried in Amazon’s latest 10k filing on Friday gives a further indication…
“In November 2010 and January 2011, we signed agreements to acquire Quidsi, Inc. and LOVEFiLM International Limited for aggregate consideration of approximately $660 (£414.44) million, primarily in cash, and the assumption of debt.”
At the time, Amazon already confirmed a $500 (£313.97) million cash price for Quidsi, an ecommerce retailer which sells through Diapers.com and Soap.com.
That should leave $160 (£100.47) million in non-Quidsi cash. But we understand Amazon actually paid about £120 ($191.1) million for the remaining Lovefilm stake.
That could suggest about $30 (£18.84) million was paid by absorbing Lovefilm debt, just as Amazon paid an additional $45 (£28.25) million for Quidsi debt.
Regardless, the £200 ($318.51) million for which Amazon is landing the whole of Lovefilm is over three years and two separate deals, not just one go in the the last month alone.