ITV PLC’s shares surged by 16% following its announcement of selling its 50% stake in the BritBox streaming service to BBC Studios for £255 million. The sale proceeds are earmarked for a share repurchase program.
The broadcaster stated that this sale enables a sharper focus on enhancing its ITVX streaming platform and expanding the global reach of ITV Studios.
Post-deal, taking into account loan repayments and taxes, ITV is set to gain £235 million.
In the morning trading session, ITV’s stock, which had declined 27% over the past year, rose by 8.02p to 63.96p.
The deal ensures continued revenue for ITV from BritBox through new, extended licensing agreements.
ITV’s CEO Carlyn McCall commented, “Selling our 50% share of BritBox International aligns with ITV’s strategic objectives of growing ITVX and expanding ITV Studios. I extend my gratitude to the BritBox International team, especially CEO Reemah Sakaan, for their exceptional work.”
Since its 2017 launch, BritBox, with a 3.8 million subscriber base, has catered to fans of classic TV, despite being overshadowed by Netflix’s 260 million subscribers.
BritBox International, accessible in eight countries including the US, Canada, Australia, South Africa, and several Nordic nations, showcases a selection of renowned British BBC and ITV programs like ‘Dad’s Army’, ‘Thunderbirds’, and ‘Captain Pugwash’.
This announcement concludes a bustling week for both ITV Studios and BBC Studios, who have been showcasing their latest productions to international buyers at events in London.
