The company, which holds the web rights for 80 English professional clubs, received $3.84m (EUR3.30m) for its 9.9 percent stake in the club.
Premium TV was dogged with speculation about its financial health earlier this year – claims it denied, despite a number of redundancies.
The breakaway deal not only gives the firm cash, but also extends its deal for the internet, mobile, and delayed live rights it holds for the club – for an undisclosed sum – until June 2007.
However, Premium will give up certain other commercial and media rights it previously handled. In particular, it will end the role of its subsidiary at Villa - Premium TV Ventures - which handled sponsorship negotiations for the club.
Said Rod Henwood, CEO of Premium TV: “The revised arrangements are good news for both the club and Premium TV.
“Our agreement relating to our core business of internet provision is extended and the sale of our convertible loan will help us invest significantly in our business.
“Throughout the last six months, in the face of significant misleading publicity, we have kept our heads down and focused on providing excellent services to our club partners.
“Aston Villa’s support and endorsement of our service is a tremendous boost to our business. We will continue to work together to provide Aston Villa fans with a first class web site and other media services, with fast, exciting, and exclusive content, and we will look to introduce new cutting-edge Aston Villa media products and services.”
Added Mark Ansell, deputy chief executive and finance director of Aston Villa: “Having worked with Premium TV for over three years, we both felt that it was now appropriate to redefine our relationship.
“Premium TV will continue to operate our web site and mobile services, and have rights over certain other broadcast opportunities, where they have developed considerable expertise and act for the Nationwide Football League clubs and other major clubs in the UK. However, all other rights are now under our control.
“The cancellation of the Convertible Loan Agreement enhances net assets per share and takes away uncertainty over a potentially large shareholding.”
Villa has been one of a number of English clubs linked to possible foreign investment in recent months, following the takeover of London club Chelsea by Russian billionaire Roman Abramovich.
