ITV has announced its latest Media for Equity investment in online estate agent Strike, trading as Purplebricks. The investment involves a subscription for £1.5 million convertible loan notes in Strike Limited, with the option for additional tranches of £1.5 million each, in exchange for advertising inventory across ITV's channels and ITVX. Purplebricks, acquired by Strike in 2023, is known for disrupting the property industry by allowing customers to sell their homes for free.
Sheena Amin, Director of ITV AdVentures, expressed excitement about the investment, highlighting the powerful combination of Strike's consumer proposition and the Purplebricks brand. ITV aims to use the power of TV to bring Strike's message to millions of viewers, building brand awareness and market share. Sam Mitchell, CEO of the Purplebricks Group, also emphasized the significance of the Media for Equity deal with ITV, stating that ITV will help take their message to homes across Britain.
Following ITV's investment, a new Purplebricks TV advertising campaign is set to launch nationally in Summer 2024. ITV AdVentures Invest, launched in 2021, is a Media for Equity programme where ITV takes minority stakes in early stage digital and direct-to-consumer businesses in return for advertising inventory across its channels. ITV's diverse portfolio of successful Media for Equity investments includes companies like what3words, Spoke, Feel, Carwow, and Resi.
The convertible loan will be held at its fair value on ITV's balance sheet, and upon conversion, the investment will not be consolidated. Each tranche of the loan notes will become convertible at the time of future qualifying financing rounds, on a change of control, or at the latest backstop date of 31 December 2025. The conversion price for each tranche will be calculated at a discount to the company valuation at the time of any future financing round.
In the audited accounts of Strike Limited for the year ended 31 March 2023, reported gross assets were £3.4m, and the net loss was £19.7m. The Company's registered office is in Colchester and has over 900 employees. This disclosure is being made in accordance with listing rule 10.4.1 as the parties have agreed to certain customary minority rights and obligations upon conversion of the loan notes, including, but not limited to drag obligations.
For further details, investors can contact Pippa Foulds or Faye Dipnarine, while media inquiries can be directed to Paul Moore or Laura Wootton.