STV Group PLC - Glasgow-based television broadcaster and streamer - Buys London-based Greenbird Media Ltd for about GBP24 million in cash, funded from its existing revolving credit facility. Greenbird, which was founded by television executives Jamie Munro and Stuart Mullin in 2012, holds majority stakes in two unscripted production companies - Crackit Productions at 75% and Tuesday's Child at 51% - and minority stakes in 13 others. Greenbird's portfolio has an archive of over 2,000 hours of content and has produced shows for the BBC, Channel 4 and Channel 5 in the UK and for Fox in the US. STV says the deal will make STV Studios one of the largest television production companies in the UK. Munro and Mullin both will join the board of STV Studios.

Greenbird recognized about GBP2.9 million in pretax profit in 2022 on about GBP32 million in revenue. The enlarged STV Studios division is expected to deliver adjusted operating profit of GBP6.0 million to GBP6.5 million in 2023 on revenue of GBP70 million to GBP75 million.

"We now expect to comfortably exceed our diversification target that at least 50% of STV's operating profit should come from outside linear broadcasting by the end of FY23, transforming STV into a more balanced, resilient media company offering both linear and digital reach, and the creation and ownership of valuable IP in the growing global content market," STV says.

Current stock price: 232.27 pence, up 1.0% in London on Thursday early afternoon

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By Tom Waite, Alliance News editor

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