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Antony Antoniou – Luxury Property Expert

Purplebricks Faces Further Turmoil as Rival Strike Considers Asset Deal

Purplebricks Faces Further Turmoil as Rival Strike Considers Asset Deal

“Navigating Troubled Waters: Insights into Purplebricks’ Challenges and Rival Strike’s Asset Deal”


The online estate agency sector is abuzz with the latest developments surrounding Purplebricks, as its shares continue to plummet amid talks of a potential asset deal with rival company Strike. This news comes shortly after Strike withdrew its takeover offer for Purplebricks’ entire share capital. In this blog post, we will delve into the implications of these discussions, the challenges faced by Purplebricks, and the turbulent journey that has led the company to its current predicament.

Purplebricks’ Shares Hit Record Low:

Purplebricks, a troubled online estate agent, experienced a significant blow as its shares reached an all-time low following the revelation of exclusive talks with Strike. The market responded with alarm to Strike’s withdrawal from bidding for the entire share capital of Purplebricks. Instead, Strike expressed interest in potentially acquiring the business and assets of Purplebricks, signaling a shift in the dynamics of the negotiation process.

Shareholder Warnings and Uncertain Returns:

Purplebricks made it clear that even if an agreement is reached, the returns to shareholders are likely to be considerably lower than the current share price. With shares trading at 1.9p at the close of the market on Wednesday, this news further eroded investor confidence. The exclusive talks with Strike do not preclude Purplebricks from pursuing a takeover offer for the entire company, highlighting the ongoing uncertainty surrounding the company’s future.

Strike Emerges as a Potential Acquirer:

Strike, formerly known as Housesimple, has emerged as a prominent player in this unfolding scenario. The company, backed by notable investors such as Carphone Warehouse and TalkTalk founder Sir Charles Dunstone and Channel 4 Ventures, holds the potential to reshape the landscape of the online estate agency market. The discussions between Strike and Purplebricks mark a significant turning point for both companies, with far-reaching implications for their respective stakeholders.

Challenges and Struggles Faced by Purplebricks:

Purplebricks’ recent troubles have been well-documented. Over the past 18 months, the company has undergone a series of challenges, including an overhaul of its operating model, multiple management reshuffles, and shareholder demands for the removal of its chairman, Paul Pindar. These difficulties led Purplebricks to initiate a strategic review and put itself up for sale in February. The company’s turnaround plans proved costlier than anticipated, exacerbating its financial woes and increasing its projected losses.

From Disruptor to Decline:

Founded in 2012, Purplebricks initially made waves in the industry, revolutionizing the traditional estate agency model. However, despite its early success, the company’s fortunes have taken a sharp downturn. In 2017, Purplebricks’ shares reached a peak of around £5 each, only to suffer a drastic decline, plummeting by 94% over the past year. This rapid erosion of shareholder value underscores the challenges and missteps faced by the company in recent times.


Purplebricks’ journey from disruptor to its current predicament reflects the volatility and challenges of the online estate agency sector. The exclusive talks with Strike and the withdrawal of the takeover offer have intensified uncertainty surrounding the future of Purplebricks. As the negotiations unfold and potential asset deals are considered, the company’s fate hangs in the balance. The evolving landscape of online estate agencies, coupled with internal struggles and financial pressures, will undoubtedly shape the path ahead for Purplebricks and its stakeholders.

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