Australian property giant, REA Group, backed by Rupert Murdoch’s News Corp, has expressed interest in acquiring UK online property portal, Rightmove, for £4.4 billion. REA Group currently operates various property websites in Australia, India, other Asian markets, and the US through realtor.com. As of now, discussions with Rightmove have not begun, and an equity funding may be necessary to complete the deal. The company has until the end of September to present their formal offer.
The ASX notice states that REA Group sees significant similarities between their company and Rightmove in their market positions, audience share, innovation and strong brand awareness, and cultural values. The group believes that they can enhance customer and consumer value across both portfolios to create a global and diversified digital property company with number one positions in Australia and the UK.
In summary, REA Group is considering a £4.4 billion possible cash-and-share offer for Rightmove. The company has until the end of September to make its formal offer. The ASX notice highlights that there are benefits in combining the two portfolios to create a “global and diversified digital property company.”
