Lofty aspirations drive YBR and Nine alliance
Yellow Brick Road (YBR) has signed a heads of agreement with Nine Entertainment that YBR says will catapult it into the position of non-bank leader in the financial services sector.
The deal will see Nine invest $13 million into YBR Group, half of which will be via shares while the other half will be provided as free advertising through Nine media outlets.
YBR executive chairman Mark Bouris said the deal would enable him to build the company’s brand and give YBR the strength and reach to make a substantial impact in the financial services category.
But the deal is subject to a number of conditions, including the completion of the back-door listing of YBR via ITS Capital Investments, as well as the subsequent capital raising of a minimum of $6 million.
It is expected that on completion of these conditions plus the Nine investment, a Nine representative will be appointed to the YBR board of directors.
This is not the first time a major media company has gained a stake in financial services.
Fairfax media made the leap in 2007 when it acquired the online non-advisory managed funds business of InvestSMART for $12 million.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
