BBC buys 40% stake in DVD business for £17m

BBC Worldwide has acquired the extra 40% share of its joint DVD operation 2entertain for £17 million.

BBC Worldwide, which owned 2entertain – the producer of BBC DVDs such as Doctor Who and Top Gear – with Woolworth, has been in negotiations to take control of the whole operation since the retail chain went into administration in 2008.

The two groups were forced to go to court after failing to agree on a valuation of Woolworth’s 40% stake.  However, the court of appeal provided clear guidance on how the share should be valued late last year, which assisted the two parties to reach a deal.

The BBC’s commercial arm will pay for the share with cash rather than licence fee money, according to reports.

John Smith, chief executive of BBC Worldwide, said: “I am pleased that we have finally concluded these negotiations, and have secured the future of 2entertain.

“2entertain’s retail partners know it is now backed by a stable owner and licence fee payers will continue to benefit from 2entertain’s contribution to BBC Worldwide, which helped us return a total of £153 million to the BBC in the last financial year.”