REA Group, an Australian online property website owned by Rupert Murdoch’s News Corp, has made a third offer to purchase British peer Rightmove. This latest bid is valued at £6.1 billion, following the rejection of two previous bids by Rightmove earlier this month. REA CEO Owen Wilson expressed disappointment at the lack of engagement from Rightmove’s Board, while Rightmove confirmed receiving the unsolicited and conditional proposal.
Rightmove’s chairman Andrew Fisher cited the uncertainty and unattractiveness of the first two proposals as reasons for rejection, emphasizing the board’s commitment to acting in the best interest of shareholders. Despite the rejection, shares in Rightmove saw a 2.8 percent increase in early trading on the FTSE 100 index in London.
REA Group publicly announced its interest in acquiring Rightmove on September 2, highlighting the similarities in their leading market positions in the residential business sector. The initial offer was £5.6 billion, with a subsequent proposal rejected on September 18. If the acquisition is successful, REA plans to seek a secondary listing on the London Stock Exchange in addition to its current listing on the Australian Securities Exchange, providing a broader investor base access to a global digital property company.
The ongoing negotiations between REA Group and Rightmove reflect the competitive landscape of the online property market and the strategic moves being made by major players to expand their reach and market presence. As technology continues to shape the real estate industry, the potential acquisition of Rightmove by REA Group could have significant implications for the digital property sector on a global scale. Investors and industry experts will be closely monitoring the developments in this acquisition saga to assess the future landscape of online property platforms and the opportunities it may present for stakeholders.
