ITV has sold its entire 50% interest in digital subscription streaming service, BritBox International.
The entire stake has been acquired by the BBC’s commercial arm, BBC Studios for £225m in cash.
ITV said it had made the decision as part of its focus on “supercharging” its UK ad-funded streaming service, ITVX and grow its global Studios division.
It said it intended to return the entire net sale proceeds to shareholders through a share buyback which it expects to launch imminently.
“The sale of 50% of BritBox International means ITV is focused on its core strategic goals of continuing to build on ITVX’s success and growing ITV Studios,” said Carolyn McCall, ITV CEO.
“I would like to thank the BritBox International team for making the company such a success and particularly CEO Reemah Sakaan for her leadership, drive and vision.”
Under the terms of the agreement, ITV Studios will continue to receive an ongoing revenue stream from BritBox International similar to current levels for the use of ITV content under new extended licensing agreements.
BritBox UK is unaffected and will still feature BBC content as part of separate long-term agreements.
“This is an important acquisition for us. We are taking full ownership of a successful, growing service we know well and that fits with our stated ambition to double the size of our business,” added Tom Fussell, BBC Studios CEO.
“Britbox International has British content at its heart and it generates and satisfies demand for British shows outside the UK. We will continue to make significant investments in the future to deliver long term value to the BBC.”
