Amazon (NASDAQ:AMZN), the largest online retailer is learned to be negotiating with UK based DVD rental company, LoveFilm for a possible acquisition. According to reports on the Sunday Times, Amazon has made an offer that values the British company at close to 200 million Pounds ($313 million).

As of now, this is still a speculation since neither of the parties have confirmed the rumors. However, the possibility is not too far-fetched either. Amazon already holds close to 42% of the stakes in LoveFilm after the company’s European rental operations were merged with LoveFilm back in 2008.

London-based LoveFilm was established in 2002 and today operates in several European countries. The company is privately held and posted revenues of close to $150 million in 2009. The company handles close to 65,000 unique DVD titles in UK alone and has over one million registered members in UK, Sweden, Norway, Denmark and Germany.

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