BBC Studios has bought out ITV’s 50% interest in streamer BritBox International in a deal worth £255m.
The landmark move gives BBC Studios sole ownership of the previously joint venture platform, which has a subscriber base of around 3.8m across the various territories it operates.
After the transaction has completed it will provide net proceeds including loan repayments and accrued dividends of around £235m after tax to ITV.
BBC Studios will move BritBox International into its global media and streaming division to sit alongside other direct-to-consumer propositions including factual streamer BBC Select. The move will see current global chief executive Reemah Sakaan exiting the company. New leadership plans are in place to ensure a smooth transition and will be announced shortly, BBC Studios said.
Sakaan has been an important part of the company since the start, and for the past three years has overseen the venture’s accelerated growth, creative success and expansion.
BritBox International was launched by the producer-distributor giants in 2017 and has increased its subscribers 300% in the time, having grown rapidly in the US and Canada. It has since launched in Australia and South Africa, Denmark, Finland, Norway and Sweden.
As part of the agreement for full ownership, BBC Studios has extended its licensing agreements with ITV ensuring that programming for BritBox International will continue to represent a wide range of British content.
ITV plans to use focus on supercharging its UK advertiser-funded streaming service, ITVX and growing its global studios division. The Board intends to return the entire net sale proceeds to shareholders through a share buyback which it expects to launch imminently after the full year results on 7 March.
The programming line-up includes a range of original and licensed content including Death in Paradise, Beyond Paradise and Archie.
Tom Fussell, BBCS chief executive, said: “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. We will continue to make significant investments in the future to deliver long term value to the BBC.
“I’d like to thank Reemah for her outstanding contribution to BritBox International, which under her stewardship has seen remarkable year-on-year growth. Her passion and dedication has helped create a great culture and build a business that is loved by audiences and that has real momentum.”
Carolyn McCall, ITV chief executive, added: “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.
“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.”
Rebecca Glashow, BBC Studios global media and streaming CEO, said: “I am thrilled to further our involvement in BritBox International – it’s a profitable business and a winning proposition. We see tremendous opportunity to grow this unique service and take it to even greater heights for its subscribers, with the full power of the BBC behind it.”