Art and culture

Rightmove in potential takeover swoop as News Corp’s REA considers bid

Australian property listing group REA is weighing a takeover bid for London-listed rival Rightmove.

REA, which is 61 per cent owned by the Murdoch family’s News Corp, said on Monday it considering a cash and share offer for the FTSE 100 firm.

The group told shareholders a potential bid could be a ‘transformational opportunity’, creating a ‘global and diversified digital property company, with number 1 positions in Australia and the UK’.

REA has until 30 September to declare a firm intention for a Rightmove takeover bid 

But REA shares fell sharply in the wake of the announcement and were down by as much as 8 per cent, putting them on track for their worst day since December 2022.

REA, which is yet to make contact with Rightmove regarding a potential offer, said a combination with the firm ‘would represent a highly attractive investment opportunity for both REA and Rightmove shareholders’.

Rightmove shares, which were up more than 23 per cent in early trading, have struggled for momentum in recent years. They are down 1.1 per cent over the last 12 months and have added just 2.5 per cent over the last five years.

It had a market cap of £4.36billion at Friday’s close.

While the firm was forced to lower guidance for advertising income earlier this year, Rightmove expects revenue growth of 7 to 9 per cent for the year.

REA said the combination would also combine ‘robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns’.

The group added: ‘REA has a long history of growth and has demonstrated a track record of building businesses over decades to create globally leading platforms that have transformed the way people experience property.

‘With an acquisition of Rightmove, REA would look to enhance the UK property experience for buyers, sellers and renters, supporting Rightmove’s vision “to give everyone the belief they can make their move” while positively contributing to the property market ecosystem with investment and innovation.’

Under City rules, REA must declare a firm intention to make a bid for Rightmove by 30 September.  

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