(Sharecast News) - ITV said on Friday that it has sold its entire 50% stake in streaming service BritBox International to its joint venture partner BBC Studios for £255m in cash.
The broadcaster said net proceeds of around £235m will be returned to shareholders through a share buyback which it expects to launch imminently after the full-year results on 7 March.
ITV said the sale reflects its strategy "of focusing on supercharging its UK advertiser-funded streaming service, ITVX and growing its global Studios division".
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.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "The move cements what has been a disappointing BritBox journey for the group. The decision will help to streamline ITV's focus as it continues with efforts to offset the structural decline in broadcast with its ad-funded streaming service, ITVX and the Studios business.
"There are a lot of the right ideas circulating, and this cash injection will help steady the ship, but there isn't quite enough proof in this pudding yet."
ITV (ITV)