Will Emoov's amalgamation solve anything?

We'd say the merger of Emoov, Tepilo and Urban is a positive move. But as the Irishman said when asked the way,  where are you coming from?

All three of these online estate agents have one thing in common, they burn large amounts of capital to make increasing losses.

The last year of filed accounts shows an accumulated loss of around £8m. So maybe there will be economies of scale with one administration cost instead of three? Will this scaling up of the brand (whatever the new one is) have an impact on the Purple Bricks market leadership? Probably not. 

Amusingly, according to the ex Dragon James Caan, who is a major backer of Emoov, this was not a merger. His story is that it was a takeover by Emoov of the other two. If this is true and no one but Caan is claiming it is, then that could be good news for 765 investors who put £2.62m into the company via Crowdcube in 2015.

The 2015 Crowdcube pitch had the usual grotesquely inflated projections and showed the company making losses for YE April 2017 of ~£1.6m, when in fact the loss was £3.1m. But who cares, eh? According to Crowdcube the event was a merger.

Now the 765 have a smaller share in larger pie. Lets hope that it doesnt fall to bits when its cooked.