Purplebricks has lost the support of one of its most significant financial backers after it announced that Andreas Weile of German media giant Axel Springer has stepped down from the hybrid agency’s board.
Weile was one of Axel Springer’s star directors and it was he who took the decision to invest some £125 million in the estate agency two years ago and then £46 million last June, both deals helping to significantly enrich the two founder, Kenny and Michael Bruce.
He joined the board of Purplebricks as a non-executive director when Axel Springer made its first investment as the company’s representative but has now stepped down with immediate effect.
Wiele (left) is to be replaced by another Axel Springer senior player in due course on the Purplebricks board.
But the hybrid agency has lost its key champion at Axel Springer, which may be rueing its investment in the company. Since 2018 the agency’s share price has plummeted from £3.14p to its current 42p, losing Axel Springer millions of pounds on paper.
“On behalf of the Board I would like to thank Andreas for his expertise and continued support of our innovative business model during his time on the
Purplebricks Board. We wish him the very best for his future endeavours,” says Paul Pindar, Chairman of Purplebricks.
Weile says he is quitting Axel Springer after 20 years to become an entrepreneur and digital business investor.