ITV plc (LON:ITV) has announced that it has sold its entire 50% interest in digital subscription streaming service BritBox International to its joint venture partner BBC Studios for a cash consideration of £255 million. The transaction will provide net proceeds including loan repayments and accrued dividends and after tax of around £235 million.
The sale reflects ITV’s strategy of focusing 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.
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.
Carolyn McCall, ITV CEO said: “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.”
Tom Fussell, BBC Studios CEO 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.”
Notes:
● There is a c.£17 million loan from ITV plc to BritBox International Ltd and a c.£1.6m loan from ITV plc to ITV SVOD Australia Pty Ltd which will be repaid as part of the transaction.
● The Transaction has been effected by ITV disposing of its 50% interests in BritBox LLC, BB Rights LLC, Denipurna Limited and BritBox International Limited and its 100% holding of ITV SVOD Australia Pty Ltd.
● The Disposal constitutes a Class 2 transaction pursuant to the UK Listing Rules. For the purposes of the LR 10.4.1 R (Notification of class 2 transactions), during the 12 months to 30 June 2023 the BBI entities (BritBox LLC, BB Rights LLC, Denipurna Limited, BritBox International Limited and ITV SVOD Australia Pty Ltd) contributed £5 million in profit before tax. The value of the gross assets the subject of the transaction is £113 million (as recognised in ITV plc’s unaudited accounts as at 30 June 2023).
