Strike, Purplebricks’ holding company, has given a shareholding to broadcaster ITV in exchange for advertising.
ITV’s ‘media to equity’ investment fund Adventures Invest will subscribe to convertible loan notes worth £1.5m on Strike, with the option of two further tranches of £1.5m each.
In return, the online estate agency will advertise its products and services on the broadcasting giant’s channels and on-demand subscription service, ITVX.
On Tuesday, ITV announced 200 job cuts as it seeks to save money amid a decline in advertising revenue.
In charge: ITV chief executive Carolyn McCall announced plans to cut 200 jobs this week
Following ITV’s investment, Purplebricks TV’s new advertising campaign will launch this summer.
Sheena Amin, Director of ITV AdVentures, said: ‘I am delighted to complete our first equity investment vehicle of the year in Strike.
‘The powerful combination of Strike’s consumer proposition, allowing homeowners to sell their home for free alongside the Purplebricks brand, makes the business ideal for a capital investment vehicle.
“We believe the company is well positioned to continue its innovation in the estate agent market and we aim to help develop both its brand awareness and market share by using the power of television to bring its message to millions of viewers “.
Strike bought online estate agency Purplebricks last year for just £1. Purplebricks was once valued at more than £800 million but was put up for sale in February 2023.
The group is backed by Carphone Warehouse and TalkTalk founder Sir Charles Dunstone, who is a partner in Strike’s major joint shareholder Freston Ventures.
ITV said on Wednesday: ‘Founded in 2012, Purplebricks is the UK’s most popular estate agency.
‘By leveraging technology and the expertise of its people, Purplebricks makes the home buying and selling process cheaper, less stressful and more transparent.
“Acquired by Strike in 2023, Purplebricks continues to revolutionize the real estate industry by allowing customers to sell their homes for free.”
Deal: Strike, trading as Purplebricks, has given a shareholding to broadcaster ITV in exchange for advertising
ITV said its investment in Strike adds to Media for Equity’s portfolio, “building on the diverse range of investments it has previously made, which in the last twelve months have included pet health and wellness company PitPat, the Flarin pain relievers and plant-based products. THIS meat business.’
Launched in 2021, ITV AdVentures Invest is a media-to-equity program in which ITV takes minority stakes in early-stage digital and direct-to-consumer businesses, along with venture capital investments, in exchange for advertising inventory across its network .
The first media deal for ITV shares came two years ago with a £2m investment in What3words, an app that converts GPS coordinates into three-word codes.
Adventures Invest has since struck deals with nutritional supplements startup Feel, utility pricing service Ismybillfair.com, men’s clothing brands Spoke and online car marketplace Carwow.
In May last year, Adventures Invest subscribed for £3m worth of PitPat shares, with an option for a further £1m.
ITV announces 200 layoffs
On Tuesday, ITV announced 200 job cuts and confirmed consultations on redundancies had begun amid plans to cut costs by £50m.
ITV chief executive Carolyn McCall said in an email to staff that the advertising crisis being experienced in the sector was the worst since the financial crisis.
Reports suggest that most of the job losses will come from the group’s media and entertainment divisions, leaving the news and daytime programs divisions intact.
ITV saw its production division’s revenue fall 16 percent in the first quarter as it continued to suffer the fallout from last year’s US writers and actors strikes.
But total advertising revenue improved in the first quarter and the broadcaster told investors it expected further growth over the next three months, with sales would be boosted by this summer’s European Football Championship.
The group, which is behind hit shows Mr Bates Vs The Post Office and Love Island, said revenue at ITV Studios fell to £382m in the three months to March 31, down from £457m a year earlier. .
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