Murdoch's REA Group Makes Final £6.2bn Bid for Rightmove

REA Group, the Australian property business controlled by Rupert Murdoch, has made a final attempt to acquire Rightmove, the UK's leading online property portal. The latest bid, valued at £6.2 billion, represents the fourth offer from REA Group as the September 30, 2024 deadline approaches.

This new proposal surpasses Rightmove's current market valuation of £5.21 billion on the London Stock Exchange and slightly exceeds the previous £6.1 billion offer. REA Group has requested an extension to the takeover deadline, emphasizing its readiness to engage in discussions immediately.

REA Group, established in 1995 in Melbourne, has expressed disappointment with Rightmove's board's repeated rejections and lack of engagement. The Australian company, which operates the country's leading property website realestate.com.au, sees potential in combining the top digital property businesses in the UK and Australia.

Owen Wilson, REA Group's CEO since 2019, stated:

"We continue to see the potential for us to strengthen Rightmove and accelerate its growth. This is a compelling opportunity to create a true global technology leader on the London market via a secondary listing, operating in two of the most attractive markets in the world."

Wilson also announced plans to include a mix-and-match facility for shareholders who prefer a greater proportion of their consideration in REA shares.

This takeover attempt highlights the Murdoch family's efforts to diversify beyond their traditional media holdings as Rupert Murdoch transitions leadership to his eldest son, Lachlan. News Corp acquired a majority stake in REA Group in 2000, marking its entry into the digital property market.

Rightmove, founded in 2000 by a consortium of estate agents, has dominated the UK online property market since going public in 2006. With over 20,000 estate agent customers and a market share exceeding 70%, Rightmove has become an integral part of the UK property landscape.

The potential merger has garnered attention from Rightmove's shareholders. Jamie Forbes-Wilson, a fund manager at AXA Investment Managers, which holds a £67 million stake in Rightmove, suggested that the board should engage in serious discussions with REA Group.

Forbes-Wilson commented, "This feels like the starting point for a serious conversation between two businesses that in combination could be a pretty exciting prospect."

As the deadline approaches, industry observers are keenly watching to see if Rightmove's board will reconsider its stance and engage with REA Group. The outcome of this takeover bid could significantly impact the global digital property market, potentially creating a powerhouse operating in two of the world's most lucrative real estate markets.