AFP / PETER PARKS
REA Group, an Australian property firm in which Rupert Murdoch’s News Corp holds a majority stake, is reportedly mulling the takeover of British property website Rightmove.
The company informed the Australian and UK stock markets on Monday of its intentions, including a cash and share offer, but has not yet entered into talks with Rightmove.
Following the announcement by REA Group, Rightmove shares shot up 25% to £6.96 (AU$13.49) — the highest it has reached since March 2022. For both renters and estate agencies in the U.K., Rightmove continues to be the top property portal, reported The Guardian.
REA has not revealed how much it is planning to offer Rightmove — currently worth £4.4bn (AU$8.5bn) — for the take over. Murdoch’s company has until Sept. 30 to make formal offer or walk away.
Rightmove drew REA’s fancy at a time when the U.K. real estate industry was facing a downturn driven by high mortgage rates, Invezz reports. Rightmove had issued a statement addressing the housebuilders and estate agents listing their properties on the platform about the slowing market, cautioning that the situation may take a turn for the worse in the present year.
The largest online real estate platform in the U.K., Rightmove, reported a 7% growth in revenue to £192 million (AU$370 million) in the first half, primarily due to developer and agency spending.
Rightmove was started in 2000 by four big estate agencies. At first, it was free to list homes, but in 2002, they began charging for it.
Murdoch’s REA is based in Melbourne and has websites in the U.S. and several countries in Asia to help people find homes. REA said it saw the collaboration as a chance to make a significant and lasting impact on the property market.
“The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns,” the company said in a statement.
