Seven West Media has taken a 10.8% stake in online platform Mad Paws, which has an audience of 300,000 active pet owners.
The strategic investment of $5.25 million is split between $1.25 million in cash and the equivalent of $4 million in advertising across Seven’s television, publishing and digital media assets.
The cash will be deployed to develop advertising and creative content as well as fast track Mad Paws progression to a single platform.
“Mad Paws has built a high-quality digital eco-system over the past three years and is now in a strong position to consolidate and grow its brand via national brand marketing," says Jeff Howard, Seven's CFO and CEO elect.
"We know brand awareness is critical for driving trust and demand for a digital marketplace business. We look forward to working with the Mad Paws team to help them become a household name across Australia.”
Justus Hammer, co-Founder and CEO of Mad Paws, says the investment reflects the company's strong market position.
"With over 6 million households now having at least one pet, Seven’s reach presents the perfect platform for taking Mad Paws’ growth to the next level," Hammer says.
"With Seven we will be able to reach a large national audience and position Mad Paws as the leading pet eco system in Australia.“
Seven earlier this week reported a steep drop in net profit after tax, down 52% to $54.46 million for the half year to December, reflecting "weakness" in advertising.
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