Project Description

HMT LLP undertook financial due diligence for Edge Investments (“Edge”) on their investment in Dial Square 86 Ltd, the holding company for online TV rights licensing platform The RightsXchange (“TRX”).

TRX is an online deal-making platform for TV rights licensing. It enables TV programme buyers to search for content, access instant rights availabilities, negotiate a deal and sign the contract entirely online. Presently transactions in this market happen offline and person-to-person, leading to long deal times and operational inefficiencies. TRX is bringing established marketplace technology to the global secondary TV rights export market, estimated to be worth in excess of $5bn per annum

Founded by TV rights entrepreneurs David Frank and Matthew Frank in 2015, TRX is backed by Sky Ventures and the Channel 4 Growth Fund, both of which are minority shareholders. TRX has spent the past two years developing the core product, and went into live beta in August 2016, having already achieved significant traction with international rights holders. There are over 500 buyers and sellers using TRX including Discovery Communications, Turner Broadcasting, All3Media International and Sky Vision. BBC Worldwide has also agreed to use TRX and list its entire catalogue to selected buyers.

Edge Investments, the specialist investment house focused on the creative industries sector, in particular media and entertainment has invested £2 million in Dial Square 86, the holding company of TRX.

HMT undertook financial due diligence on this transaction

Joanna Smith, Investment Manager at Edge commented:

“We really enjoyed working with the team at HMT on this transaction. They were very responsive and efficient within a tight timetable, which helped us to stay on track for our target completion date. I would recommend them to anyone looking for high quality due diligence in the venture space.”

Paul Read commented:

We are delighted to have advised Edge on yet another transaction this year. TRX operates in an innovative sector where demand is strong and with Edge’s support, they will be able to reach their ambitious growth goals.”