2|entertain was a joint venture, 60% owned by BBC Worldwide and 40% by Woolworths. When Woolworths entered administration in November 2008, BBC Worldwide exercised its right to acquire the outstanding shares.
The stake was paid for using existing cash at BBC Worldwide because, as the commercial arm of the BBC, it has no access to licence-fee income.
The sale process began in late 2008 and the completion of the sale protects the investment BBC Worldwide has made in to 2|entertain over the last six years.
In a statement, BBC Worldwide said the £17m consideration represented the fair value of the stake as agreed by BBC Worldwide and the administrators.
John Smith, chief executive of BBC Worldwide, said "This comes as good news for a variety of stakeholders. 2|entertain's retail partners know it is now backed by a stable owner. Consumers can continue to enjoy BBC content on DVD in their own homes. And licence fee payers will continue to benefit from 2|entertain's contribution to BBC Worldwide, which helped us return a total of £153m to the BBC in the last financial year."
2|entertain publishes popular DVD titles such as 'Gavin & Stacey', 'Doctor Who', 'Top Gear' and 'Fawlty Towers', and distributes products in more than 60 territories worldwide, including North America, Australia and Japan.
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