Shares in Rightmove (RMV) leapt 25% this morning on the news that a Murdoch-owned Australian property giant is considering a takeover bid for the British property website.
In a statement to Australian markets this morning, Melbourne-headquarted REA Group (REA), which is listed on the Australian Securities Exchange and is majority owned by Rupert Murdoch’s News Corp, announced it was mulling a possible cash and share offer for the online property portal, although it has yet to make a formal approach.
This morning Rightmove was the leading riser on the FTSE 100 index, with shares jumping to a high of £6.96, bringing its market capitalisation to £5.4 billion.
The business is currently the market leader in online property lettings and sales, ahead of rivals Zoopla and OnTheMarket.
Online property listing businesses have been the subject of some speculation of late. In December 2023, US real estate group CoStar acquired OnTheMarket in the hopes of knocking Rightmove from its top spot. The move led to fears Rightmove might lose its competetive edge, and potentially itself become the target of a separate takeover.
Rightmove has been a UK PLC success story since its inception in 2000. This year it reported strong financial results for the full-year 2023 with a 71% operating profit margin. The firm also said its had revenues surged by £31.7 million in 2023 to £396 million, a 10% increase from levels in 2022.
REA Group, which is 61% owned by Murdoch’s News Corp, said there were “clear similarities” with the firm and Rightmove’s “leading market positions in the core residential business.” It added the deal would be a highly attractive opportunity for both REA and Rightmove Shareholders.
REA has several brands in Australia, the US, and India. The company previously attempted to expand into the UK, but eventually sold its UK operation to Zoopla in 2009.
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