The Seven West Media chief government, fresh from leading a
$22 million funding round in start-up Airtasker, as discovered with the aid of
Fairfax Media, is eyeing extra agencies to add to the media agency's growing
portfolio as it seeks to diversify its earnings out of doors of television and
newspapers.
"I wouldn't say we are a VC, we are a strategic partner
that provides precise blessings associated with our core competency as Australia's
leading diverse media employer," Mr Worner stated.
market possibility: Seven West leader executive Tim Worner
with Airtasker’s Tim Fung and Jonathan Lui. photograph: Ben Rushton
"those investments are aligned with our strategy of
fuelling new growth and diversifying profits. what is been clear happening this
path is that new rising groups recognise the advantages of our media assets in
supporting them pressure increase."
Seven now owns 15 per cent of Airtasker, which is a marketplace
that lets in people to compete to finish clients' odd jobs - some thing from
placing up a painting to bartending a party.
variety of opportunities
Seven has brought greater than 10 investments to its
portfolio for round $50 million, in each cash and contra, in corporations
across Australia,
in addition to the UK,
united states
and Singapore.
those consist of hyper-local social media network Nabo – which Fairfax Media is
also invested in – peer-to-peer lending platform Society One, on-line client
health listing HealthEngine and child boomer media logo starts offevolved at
60.
"Our team observe a wide variety of possibilities that
sit down within our target verticals, but are very selective in ensuring any
investment meets our strategic criteria," Seven chief executive Tim Worner
told Fairfax Media.
"There are numerous investments presently below
attention and new areas that we are exploring. we will maintain to pursue this
approach as we trust it creates value for our shareholders, maximises the utilisation
of our assets and opens up new markets for our belongings."
The concept at the back of making an investment in
start-united statesis to diversify Seven's commercial enterprise out of doors
its television and newspaper property. Seven is looking for investments that
upload cost to its core organizations, as well as being able to leverage the
conventional mediums to assist the smaller organizations develop quicker and
more potent than they in any other case would.
"Our audience reach and presence throughout many media
platforms – television, publishing, online, new digital applications – supplies
what a lot of those nicely run corporations need: advertising horsepower and
growing focus," Mr Worner stated.
it's a strategy that become highlighted with the aid of
PricewaterhouseCoopers generation, communications and leisure industry lead
David Wiadrowski.
conventional media, which include tv and newspapers, are
facing growing opposition for audience and advertising dollars, so they need to
department out to locate increase.
"If a customer sees Fairfax or Channel Seven as a
writer of newspapers or a free-to-air channel, within the lengthy-term they may
not live to tell the tale – it is why they want to adapt their commercial
enterprise models and they're starting to try this," Mr Wiadrowski
instructed Fairfax Media during the release of the company's Media and
amusement Outlook 2016-2020.
while Seven can be gambling in the Australian start-up area
with some of investments, the media company would not see itself as a task
capitalist.
Strategic advantages
The investments had added robust returns up to now – but, it
was critical to realise that the general public had been lengthy-time period
possibilities, Mr Worner stated.
"There are a number of strategic benefits that waft to
each parties as part of our agreements, but at the quit of the day it's all
about how we create shareholder price."
generally, Seven chooses investments where it can upload
price and knowledge – the majority are client dealing with businesses, although
no longer all.
"In most people of cases those investments are
purchaser facing in which we will use the electricity of our assets to help
develop, however there also are some of investments which can be B2B or tech
that still offer strategic advantages to the organization or in areas wherein
we can convey an unfair benefit," Mr Worner said.
It rarely invests in enterprise at some stage in the seed
degree, collection A on the earliest, however commonly at a later stage wherein
the organisation is in a position where it may develop scale.
"We examine a huge variety of possibilities, both large
and comparatively early stage, and examine those investments via a stringent
process that our investment committee have in area," he stated.
"content material production has in reality been an
area that has been a strategic awareness for our commercial enterprise for some
of years. we've got a assorted investment approach and could hold to evaluate
opportunities in terms of strategic alignment and shareholder fee
creation."
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