Troubled broker Purplebricks in exclusive takeover talks with online rival Strike
Troubled broker Purplebricks is in exclusive takeover talks with rival Strike.
Late yesterday, it said the two sides are in talks over a possible deal. But Purplebricks warned that any sale would generate returns for investors “below the current share price” of about 1.9 pence.
Strike, another online broker, is backed by several investors, including Carphone Warehouse and TalkTalk founder Sir Charles Dunstone, as well as Channel 4’s venture capital arm.
On the verge: Troubled online brokerage Purplebricks warned any sale would generate returns for investors ‘below the current share price’ of about 1.9 pence
Talks between the two came after Purplebricks warned this week it was facing a cash crunch as it scrambled to find a buyer.
Founded in 2012, the company rose to prominence as a disruptor of the traditional high street brokerage business model and its share price exceeded 500 pence in 2017.
But after troubles including a fateful international expansion, its value has plummeted – and last year saw changes at the top as it faced vocal criticism from a major shareholder.
This week it said a payment company it uses to process customer charges had withheld some cash and the number of instructions from homeowners had nearly halved in recent months.