Amazon.com has agreed to buy out its remaining interest in LoveFilm, the European equivalent of movie rental service NetFlix.

Rumors of the deal first surfaced last September after The Sunday Times reported that Amazon was looking to to buy the remaining 58 percent of the company that it didn't already own. The Wall Street Journal reports, citing people familiar with the deal, that Amazon paid about $320 million for the remaining share.

In addition to allowing customers to rent DVDs and games via postal mail, LoveFilm has a growing streaming video service. The company, which operates in the UK, German, Sweden, Norway and Denmark, offers monthly service from £4.99 to £15.99 per month.

“LOVEFiLM has been innovating on behalf of movie rental customers across Europe for many years and with the advent of the LOVEFiLM player, they are further delighting customers by streaming digital movies for their immediate enjoyment,” said Greg Greeley, Amazon’s Vice President of European Retail in a press release. “LOVEFiLM and Amazon have enjoyed a strong working relationship since LOVEFiLM acquired Amazon Europe’s DVD rental business in 2008, and we look forward to a productive and innovative future.”

The buyout of LoveFilm may once again raise speculation that Amazon.com will go after NetFlix, a company now valued at $9.6 billion. That may be too rich for Amazon, especially given that the online movie rental service was valued at just over $5 billion eight months ago. Sales tax considerations in the U.S. also have reportedly made it tough for Amazon to pull the trigger on Netflix.

Nonetheless, the rumors have continued to re-appear over the past year. And now with Amazon buying out LoveFilm the chatter is already coming back.

Founded in 2004, LoveFilm was backed by backed by Balderton, Index and DFJ Esprit.