Mr Neal sold Box TV to Digital Classics, the AIM-listed firm which operates a digital TV arts channel, with the £6.12m fee being paid equally in cash and shares.

He and two other Box directors, including Justin Thomson-Glover, have signed contracts to stay on at the independent production company for three years. Mr Thomson-Glover is also joining the Digital Classics board.

Box TV made a pre-tax loss of £829,195 in the 17 months to 31 March 2005, on turnover of £1,566,878.

The company was forced to retrench in March this year, after two drama projects developed for ITV failed to win commissions, with the head of drama, Jake Lushington, and the head of comedy, Ben Cavey, departing.

Box TV's credits include Sweeney Todd, to be broadcast on BBC1 this Christmas, and the Jimmy McGovern dramas Sunday and Gunpowder Treason and Plot.

Mr Neal set up Box TV five years ago, after leaving Channel 4, where he was the head of drama. Before joining Channel 4 he was Granada TV's head of drama.

Digital Classics has also today bought specialist music and arts TV programming distributor NBD for £1.46m in cash and shares.

The company said it expected both acquisitions to be earnings enhancing in the first year after the deals.

Source: http://business.guardian.co.uk/story/0,,1663944,00.html