Investing.com -- The commercial content arm of the BBC has announced that it is taking full ownership of BritBox International, a streaming service launched by the U.K. public broadcaster and television network ITV (LON:ITV) in 2017.
In an announcement, BBC Studios said it would acquire ITV's 50% share of BritBox for a cash consideration of £255 million.
BBC Studios Chief Executive Tom Fussell said the move fits with its "stated ambition" of doubling the size of the business, adding that it "satisfies demand" for British programming outside of the U.K.
ITV, meanwhile, argued that the sale of its stake in BritBox will allow the firm to focus on building out its ad-funded ITVX streaming offering and its global Studios division.
Under the terms of the transaction, ITV will continue to receive an ongoing revenue stream from BritBox similar to levels for its current content, analysts at UBS said in a note to clients.
London-listed shares in ITV had surged by more than 14% in mid-morning trading on Friday.