Investment in what3words
ITV plc
ITV ANNOUNCES INVESTMENT IN what3words
First Investment Under Its New Media For Equity Programme
Following the announcement of "ITV AdVentures Invest," a Media for Equity initiative, ITV has now concluded its first investment in what3words Limited. what3words is a uniquely accessible location service, which has divided the world into a grid of 3m squares, giving each its own three word identifier: a what3words address. For example, the front door to ITV's head office can be found at ///drama.keen.buyers, and one of ITV's most-iconic locations, the Rovers Return in Coronation Street is at ///horn.studio.towers. ITV is acquiring a minority stake valued at £2 million in return for advertising inventory, with an option to invest a further £2 million.
The Media for Equity programme sees ITV take minority stakes in early stage digital and direct-to-consumer businesses, alongside venture capital investment, in return for advertising inventory across ITV's range of market-leading channels and the ITV Hub. The initiative will serve as an innovative opportunity for early stage businesses seeking to build scale through TV advertising, alongside a strategic media partner.
ITV has appointed Niko Waesche, a seasoned media investor and venture capitalist, to lead the initiative. Niko was responsible for co-founding Germany's leading independent media for equity fund, German Media Pool, and brings significant experience from a background in media strategy, sales, data and tech, having previously held senior positions within RTL, GfK and the media industry unit of IBM.
The equity initiative's first investment is in what3words, an innovative, widely available addressing technology providing a simple way to communicate location. what3words is available as a free app to consumers, whilst clients of the company include automobility brands Mercedes-Benz, Ford, the AA and Addison Lee, and delivery/ e-commerce platforms such as Hermes and BJS. In addition, hundreds of emergency control rooms in markets as diverse as the UK, India, North America and South Africa use the technology on a daily basis to reduce search times.
In addition to Media for Equity, ITV runs a matching scheme for entrepreneurial companies new to TV called AdVentures Ignite. ITV Commercial has also recently launched ITV Backing Business, an initiative with a wider remit designed to support UK's businesses and their personnel as they return to growth. Backing Business will offer bespoke content and resources, including marketing initiatives, consumer and cultural insights and research and analysis tools.
Kelly Williams, Managing Director ITV Commercial, said: "We are always exploring new and creative opportunities to introduce emerging brands to TV advertising. This new equity scheme marks an opportunity for ITV to invest in and support entrepreneurial consumer-focused companies, whilst diversifying and expanding upon our existing clients and relationships. This initiative will also demonstrate to digital-led businesses the power of ITV's weekly reach of over 40 million people, as well as the storytelling and brand-building capabilities of TV. We are thrilled that our first investment is a leading UK-based tech company which also supports public services."
Giles Rhys Jones, CMO of what3words adds: "what3words has seen a dramatic increase in the number of people using the system. Our work is helping individuals and businesses across the UK to make deliveries, meet friends, specify destinations for taxis and cars, but also to save lives. ITV can take our message of helping people to "know exactly where" to millions of homes. It's fantastic to have such a great partner on our mission to make the world a safer, less frustrating and more efficient place."
NOTES:
1. The investment will not be consolidated and will be held at its fair value on ITV's balance sheet
2. In the consolidated audited accounts of what3words Limited for the year ended 31st December 2019, reported gross assets were £24.7m and the reported loss was £14.5m
3. 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 including but not limited to tag-along rights and drag obligations
About what3words
Find your what3words address here .
Co-founded in London in 2013 by Chris Sheldrick, what3words is the simplest way to talk about location. The system covers the entire world, never needs updating, and works offline. A what3words address is a human-friendly way to share very precise locations with other people, or to input them into platforms and machines such as ride-hailing apps or e-commerce checkouts. It is optimised for voice input and contains built-in error prevention to immediately identify and correct input mistakes.
The free what3words app, available for iOS and Android , and the online map enable people to find, share and navigate to what3words addresses in over 45 languages to date. Millions of what3words addresses are in use around the world, with thousands of businesses using them to save money, be more efficient and provide a better customer experience. what3words is integrated into apps, platforms and websites, with just a few lines of code. Products are available for free or for a nominal fee for qualifying NGOs. Its partners include Mercedes-Benz, Triumph Motorcycles, Premier Inn, the AA and many emergency services across the world.
what3words has a team of over 100 people, across offices in London UK, San-Francisco USA, Johannesburg ZA and Ulaanbaatar Mongolia. The company has raised over £80 million in capital from investors such as Intel, Aramex, Deutsche Bahn, Subaru and the Sony Investment Fund.
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