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BBC Studios has paid £255 million ($322 million) to acquire ITV’s stake in its streaming joint venture, BritBox International, the biggest deal ever for the BBC’s commercial wing.
In a regulatory note confirming the sale this morning, ITV confirmed it had sold its 50% and that profits would be returned to shareholders through a share buyback plan to be launched after full-year results are published. March 7th. The BBC later confirmed the deal in a separate statement.
As a result, BritBox International CEO Reemah Sakaan will leave the business and join the BBC Studios Global Media & Streaming division alongside the likes of BBC.com, BBC Select and BBC Podcast Premium. The BBC said new leadership plans are in place “to ensure a smooth transition” and will be announced “imminently”, and it is understood that Sakaan will remain at BritBox during the transition period.
The deal values BritBox International, which has almost four million subscribers across eight territories, at more than £500 million. We understand the deal is the largest ever signed by BBC Studios.
BritBox UK, in which ITV owns 100% of the shares, is not affected by the deal. BBC Studios content will remain on that service as part of separate long-term deals.
Tom Fussell, chief executive of BBC Studios, said: “This is a significant acquisition for us. We are taking full ownership of a successful and growing service that we know well and which fits with our stated ambition to double the size of our business. Britbox International focuses on British content, generating and meeting demand for British programs outside the UK. We will continue to make significant investments in the future to deliver long-term value to the BBC.
“I would like to thank Reemah for her outstanding contribution to BritBox International, which under her leadership has seen remarkable growth year on year.”
Sakaan said the “landmark deal recognizes the strategic vision and creativity that has built the business over the past seven years.”
“Bringing a post-it note idea to 3.75 million passionate subscribers around the world has been a professional thrill that I couldn’t be more proud of,” she added. “ITV and BBC Studios have been nurturing shareholders and I know BBC Studios will continue to build on the successful and ambitious DNA of what we have created.”
Rebecca Glashow, chief executive of BBC Studios Global Media & Streaming, added that BritBox International is “a profitable business and a winning proposition”, adding: “We see a huge opportunity to grow this unique service and take it to even greater heights for its customers. subscribers, with the full power of the BBC behind it.”
Concerned producers have contacted us and BritBox International is considered a key buyer for many. A BBC Studios spokesperson said the new deal would not affect commissioning plans.
“BritBox International will continue to commission from a wide range of UK independents, as well as BBC Studios and ITV, to bring the best of British entertainment to international subscribers, all in one place,” they said. “There are no plans to change the procurement schedule or strategy.”
ITV said it is leaving to focus on the growth of its own streamer, ITVX, and its global division ITV Studios and will redirect its efforts in that direction after the deal.
ITV Studios, ITV’s sales and production arm, will continue to receive a “continued revenue stream from BritBox International similar to current levels from the use of ITV content under new extended licensing agreements.”
Carolyn McCall, chief executive of ITV, said: “The sale of 50% of BritBox International means ITV is focusing on its core strategic objectives of continuing to build on the success of ITVX and growing ITV Studios.
“I would like to thank the team at BritBox International for making the company a success and, in particular, CEO Reemah Sakaan for her leadership, drive and vision.”
BBC Studios and ITV launched the business in 2017 to tap into demand for British content in North America and other select markets. The service has increased its number of subscribers by more than 300% in the last four years and is now approaching 3.8 million.
BritBox International is currently available in eight countries: US, Canada, Australia, South Africa, Denmark, Finland, Norway and Sweden, and offers programs such as Archie, Death in Paradise, Father Brown, Line of Duty, Sherwood and Shetland.
This comes at the end of a busy week for both ITV Studios and BBC Studios, who have been shopping their latest releases to international buyers at their London TV Screenings and BBC Studios Showcase events in London.