(Alliance News) - ITV PLC on Friday said that it has sold its entire interest in BritBox International Ltd to its joint venture partner, BBC Studios Ltd, for GBP255 million and will return all the cash to shareholders.
ITV is a London-based television broadcaster and content producer. Shares in the firm were up 14% following the news at 63.95 pence each in London on Friday morning.
An online digital video subscription service, BritBox was originally founded by both ITV and the BBC, and operates in a number of countries, including the US and South Africa.
ITV has now sold its entire 50% interest in the service to BBC Studios. The transaction will provide net proceeds to ITV, including loan repayments and accrued dividends, and after tax, of around GBP235 million.
As part of the transaction, a GBP17 million loan from ITV to BritBox, as well as a GBP1.6 million loan from ITV to ITV SVOD Australia Pty Ltd, will be repaid.
However, 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.
According to ITV, the sale reflects its decision to focus on ITVX, its UK-based advertiser-funded streaming service, as well as its global Studios division.
ITV plans to return the entire net sale proceeds to shareholders through a share buyback, which it said will start after its full-year results are out on Thursday next week.
"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 ITV Chief Executive Officer Carolyn McCall.
BBC Studios CEO Tom Fussell added: "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. Britbox International has British content at its heart and it generates and satisfies demand for British shows outside the UK."
By Holly Beveridge, Alliance News reporter
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