Seven West emerges as key investor for NWZ
Seven West Media (ASX:SWM) has jumped on board with Newzulu (ASX:NWZ) by taking part in a $5 million placement to strategic and cornerstone investors.
NWZ revealed the planned deal today, with SWM keen to get on board with the ‘crowdsourcing’ player – opening up the possibility of SWM working with NWZ on “crowd sourced content initiatives”.
The placement will be for 500 million shares at 1c each, while investors will also get the opportunity to take part in the 1c offer with a separate fully underwritten $2 million entitlement issue to be made available.
The placement also confirms Thorney Investment Group as a cornerstone investors, while SWM and Thorney will gain 90 million options, 72 million at 2c with a 3 year expiry date and 18 million at 3c with a 3 year expiry date.
The appearance of an established big media name on the register, not just via a partnership, will be somewhat of a boon for NWZ – which has recently focused on the North American market but in the past has focused on content initiatives with players such as the ABC.
“Newzulu is delighted to have completed this fundraising with the support of Australia’s leading media company in Seven West Media and a further investment from financial cornerstone Thorney,” NWZ managing director Alexander Hartman said.
“Further, Newzulu is now in the exciting position to collaborate with Seven West on world leading crowd sourced content initiatives across Seven’s digital and traditional publishing and broadcast assets.”
Newzulu is a news platform where publishers can connect with citizen journalists who are on the scene of unfolding news taking footage with their mobile phones.
In the past, citizen journalists had to connect with individual newsroom, and then wait for a response.
For publishers, they had to verify the content was real.
NWZ however takes a lot of the gruntwork out of the process and makes things easier for both publisher and citizen journalist.
Citizen journalists simply log onto the Newzulu platform, upload the footage and then wait for the cash to roll in.
Newzulu verifies the content to make sure it’s legitimate, and then pays the citizen journalist a fee for the content.
Then a Newzulu partner such as Agence France Presse or Getty Images then onsells the footage to news organisations which have paid for access to the Newzulu library.