Shares in ITV PLC (LSE:ITV) jumped 16% after it said it had sold its half share of the BritBox streaming service to BBC Studios for £255 million with the proceeds used to fund a share buyback programme.
Announcing the disposal, the broadcaster said the move would allow it to focus on enhancing its domestic streaming platform, ITVX, and expand its global Studios division.
After accounting for loan repayments and tax, the deal will net £235 million.
ITV stock, off 27% in the last year, was up 8.02p at 63.96p in morning trade.
Under the terms of the transaction, ITV will maintain a revenue inflow from BritBox thanks to new extended licensing agreements.
"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," said ITV CEO Carlyn McCall.
"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."
Launched in 2017, BritBox has tapped into demand for nostalgia TV. In doing so, it has created a subscriber base of 3.8 million, which, granted is a spit in the ocean when compared with Netflix's 260 million users.
Available in eight countries, including the US, Canada, Australia, South Africa, and several Nordic countries, BritBox International offers a variety of popular British BBC and ITV shows such as 'Dad's Army', 'Thunderbirds' and 'Captain Pugwash'.
The announcement caps a week filled with activities for both ITV Studios and BBC Studios, who have been presenting their latest offerings to global buyers at events in London.
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