Lovefilm Considers IPO, Buyout

LONDON (Reuters) – Lovefilm, the DVD mailorder rental company, is considering launching an initial public offering, two people close to the situation said on Monday. The company is weighing up an IPO among several options after it was approached by a number of private equity firms looking to buy out existing shareholders.

“I can confirm that Lovefilm has received approaches and that the board is considering options on behalf of the group and its shareholders,” a company spokesman told Reuters.

The private equity firms in talks with Lovefilm include KKR and Silver Lake Partners, one of the people said, confirming an earlier report in the Financial Times.

The Lovefilm spokesman declined to comment on further details.

KKR declined to comment and Silver Lake could not immediately be reached for comment.

By Victoria Howley and Kate Holton

(Additional reporting by Simon Meads.; editing by Simon Jessop)