BBC Studios buys ITV out of specialist streamer BritBox International for $321m

Britbox was launched by BBC Studios and commercial broadcaster ITV in 2017

BBC Studios (BBCS), the commercial arm of the UK public broadcaster, is taking full ownership of BritBox International, acquiring ITV’s 50% share for a cash consideration of £255m (US$321m).

Launched by BBCS and UK commercial broadcaster ITV in 2017, BritBox International is a specialist streaming service delivering British scripted content to audiences in the US, Canada, Australia, South Africa, Denmark, Finland, Norway and Sweden.

BritBox International will now become part of BBCS’s Global Media and Streaming division, which includes BBC.com, BBC Select, the BBC’s premium ad-free documentary streaming service in North America and audio service BBC Podcast Premium.

As part of that integration, BritBox International’s global CEO Reemah Sakaan is stepping down after three years in the role. In a statement, BBCS said: “New leadership plans are in place to ensure a smooth transition and will be announced imminently.”

BBCS said today the service has grown subscribers by more than 300% in the past four years, and now has 3.75 million and an enterprise value of around £500m.

As part of the transaction, BBCS has extended its licensing agreements with ITV for the BritBox International catalogue which includes Archie, Death in Paradise, Father Brown, Line of Duty, Sherwood and Shetland.

ITV said the sale reflects its strategy of focusing on its UK advertiser-funded streaming service ITVX and growing its global Studios division. The commercial broadcaster said: “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 March 7.”

Tom Fussell, BBCS’s 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.”

Carolyn McCall, ITV’s 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.”

Rebecca Glashow, CEO of BBCS Global Media and Streaming, 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.”