Purplebricks, the flailing U.K.-based brokerage that has pulled out of Australia and is reviewing its U.S. operations, may have just received a lifeline.
Axel Springer, the German media company behind Business Insider, said Monday that it would buy 43.7 million shares, doubling its stake in the company to 26 percent, according to Inman.
In announcing the investment, which it paid a few dollars to executives for, Alex Springer said Purplebricks is a “the hybrid real estate agent model” that “offers great potential.” It had previously invested $177 million in the brokerage.
Since launching in 2014, Purplebricks shook up the brokerage world by charging homesellers a flat-fee of around $3,200 to list their properties.
But in the past year, the flat-fee brokerage’s stock price dropped 65 percent and multiple executives have left the company. Purplebricks slashed its forecasted revenue for 2019 from $242 million to between $170 million to $183 million.