ITV invests in real estate agent Purplebricks

Purplebricks holding company Strike has transferred an equity stake to broadcaster ITV in return for advertising.

ITV’s ‘media for equity’ investment fund, Adventures Invest, will subscribe to £1.5 million convertible loan notes in Strike, with the option for a further two tranches of £1.5 million each.

In return, the online broker will advertise its products and services through the broadcasting giant’s channels and on-demand subscription service ITVX.

On Tuesday, ITV announced 200 job cuts as it looks to save money amid a fall in advertising revenue.

Responsible: ITV CEO Carolyn McCall this week announced plans to cut 200 jobs

Following ITV’s investment, Purplebricks TV’s new advertising campaign will be launched this summer.

Sheena Amin, director of ITV AdVentures, said: “I am delighted to be completing our first equity investment media of the year in Strike.

‘The powerful combination of Strike’s consumer proposition, which allows homeowners to sell their home for free together with the Purplebricks brand, makes the company ideally suited as a medium for equity investment.

‘We believe the company is well positioned to continue disrupting the estate agent market and we aim to build both their brand awareness and market share by using the power of TV to deliver their message to millions of viewers .’

Strike bought online estate agent Purplebricks last year for just £1. Purplebricks was once valued at more than £800m but put itself up for sale in February 2023.

The group is backed by Carphone Warehouse and TalkTalk founder Sir Charles Dunstone, who is a partner at Strike’s co-majority shareholder Freston Ventures.

ITV said on Wednesday: ‘Purplebricks, founded in 2012, is the most popular estate agency in Britain.

‘By using technology and the expertise of its people, Purplebricks makes the process of buying and selling homes cheaper, less stressful and more transparent.

‘Purplebricks, acquired by Strike in 2023, continues to disrupt the real estate industry by allowing customers to sell their homes for free.’

Deal: Strike, trading as Purplebricks, has transferred an equity stake to broadcaster ITV in return for advertising

Deal: Strike, trading as Purplebricks, has transferred an equity stake to broadcaster ITV in return for advertising

ITV said the investment in Strike adds to the Media for Equity portfolio, ‘building on the diverse range of investments it has previously made, including in the last twelve months pet health and wellbeing company PitPat, pain relief brand Flarin and plant-based products. meat company THIS.”

Launched in 2021, ITV AdVentures Invest is a media for equity program where ITV takes minority stakes in early-stage digital and direct-to-consumer companies, alongside venture capital investments, in return for advertising inventory across its network.

ITV’s first-ever media for equity deal was secured two years ago with a £2m investment in What3words, an app that converts GPS coordinates into three-word codes.

Since then, Adventures Invest has forged ties with nutritional supplement startup Feel, energy pricing service, menswear brands Spoke and online car marketplace Carwow.

In May last year, Adventures Invest signed up for £3 million worth of PitPat shares, with an option for a further £1 million.

ITV announces 200 job cuts

On Tuesday, ITV announced 200 job cuts and confirmed redundancy consultations had begun, amid plans to cut costs by £50 million.

ITV chief executive Carolyn McCall said in an email to staff that the industry’s advertising decline was the worst since the financial crisis.

Reports suggest that the bulk of job losses will come from the group’s media and entertainment divisions, with its news and daytime programming divisions left untouched.

ITV saw its production revenues fall 16 percent in the first quarter as the company continued to suffer the fallout from last year’s US writers and actors’ strikes.

But overall advertising revenue improved in the first quarter and the broadcaster told investors it expected further growth over the next three months, with revenue expected to rise from this summer’s European football championships.

The group, which is behind hit shows Mr Bates Vs The Post Office and Love Island, said ITV Studios’ revenues fell to £382 million in the three months to March 31, compared to £457 million a year earlier.

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