STV Studios Takes Majority Holding in Two Cities Television

STV Studios has increased its 25 percent equity stake in the high-end production company Two Cities Television to a majority holding of 51 percent.

STV originally acquired a minority stake in Two Cities in January 2020, with an option to increase to a majority position when Two Cities became profitable. Two Cities has since produced the police drama Blue Lights to critical acclaim and has additional series that are forecast to deliver revenues of £55 million over the next three years.

Two Cities also previously produced Patrick Melrose, starring Benedict Cumberbatch.

The acquisition will support STV Studios on its journey to having a 10 percent operating margin. At this stage in the year, however, delivery schedules for commissioned shows have not been finalized, so the phasing of profit across the next three years is not yet agreed.

Two Cities was originally founded in 2016, led by Michael Jackson, formerly controller of BBC One and BBC Two, CEO of Channel 4, president of programming at USA Entertainment and chairman of Universal Television, as well as creative director Stephen Wright, formerly head of drama for BBC Northern Ireland, where he commissioned Line of Duty and The Fall.

“The STV team have been incredible partners,” Wright and Jackson said. “The company is beginning to find its feet and we are thankful for all the support from STV Studios in getting Two Cities up and running. Their continued investment and partnership will allow us to develop and grow.”

“Michael and Stephen have delivered significant creative and commercial success on the back of the stand-out performance of Blue Lights, and there is so much more to come,” said Simon Pitts, chief executive of STV Group. “STV’s consolidation of Two Cities is clear evidence of the ongoing success of our studio’s strategy of taking minority stakes in high-potential production companies. We’re very proud to be in business with Two Cities and look forward to our continued partnership.”

David Mortimer, managing director of STV Studios, added, “Two Cities remains a natural partner for STV Studios, producing high-quality drama across the U.K. and beyond. Their brilliant police series Blue Lights truly put them on the map, launching to rave reviews and very strong ratings in 2023. Two Cities has more work lined up for 2024 and beyond, a strong development pipeline and many exciting projects to come. I’ve really enjoyed working with Michael and Stephen over the last four years; they are two of the very best in the business. I’m sure exciting times lie ahead!”