Australia’s REA Group, an online property advertising firm majority-owned by Rupert Murdoch’s News Corp, is considering a potential takeover of Rightmove in a deal estimated at around £4.4 billion.
REA Group highlighted the “clear similarities” and “highly aligned cultural values” between the two companies in a statement. Rightmove, listed on the London Stock Exchange, is the UK’s largest online real estate portal, with a market value of £4.4 billion as of Friday’s close.
REA Group noted:
“REA sees a transformational opportunity to leverage its leading global capabilities and expertise to enhance customer and consumer value across the combined portfolio, aiming to establish a global and diversified digital property company with top positions in both Australia and the UK.”
REA, known for its prominent residential property marketplace in Australia through its realestate.com website and other brands in India, Asia, and the US—including realtor.com—sees a major opportunity in this potential acquisition.
“REA views this as a transformative chance to leverage its leading global capabilities and expertise to boost customer and consumer value across the combined portfolio, aiming to create a diversified global digital property company with leading positions in both Australia and the UK.”
Competition in the UK real estate market has intensified, particularly after US online real estate giant CoStar acquired Rightmove’s local competitor, OnTheMarket, late last year.
There is no certainty yet regarding whether an offer will be made or the terms of any potential offer.
