Rightmove Rejects £6.2bn Takeover Bid from Murdoch's REA Group

Rightmove, the UK's premier property portal, has firmly rejected a £6.2 billion takeover offer from REA Group, an Australian property entity owned by Rupert Murdoch. This decision, made just hours before a critical deadline, marks the fourth unsuccessful attempt by REA to acquire Rightmove.

The board of Rightmove unanimously dismissed the proposal, stating that it "remains unattractive and continues to materially undervalue Rightmove and its future prospects." The company, which has been the leading operator in the UK for over two decades, expressed confidence in its standalone future and strategy.

Rightmove's rejection comes after meetings between Andrew Fisher, Rightmove's chairman, and Hamish McLennan, chairman of REA Group. The £6.2 billion offer represented a significant premium to Rightmove's market valuation of approximately £5 billion. Following the announcement, Rightmove's share price experienced a decline of nearly 3% on Monday morning.

The property portal, which lists over 1 million properties for sale or rent, has also declined REA's request to extend the "put-up-or-shut-up" deadline set for 5pm on Monday, September 30, 2024. Rightmove asserted that REA possesses "considerable information" to make an offer that could be recommended to shareholders.

Andrew Fisher stated:

"We respect REA and the success they have achieved in their domestic market. However, we remain confident in the standalone future of Rightmove. Rightmove has been the leading operator in the UK for over 20 years, and it has differentiated market presence, branding and technology, and very significant opportunities for future growth."

Fisher urged REA to submit a best and final proposal before the deadline to bring certainty to the process, acknowledging the disruptive nature of the past few weeks for Rightmove's colleagues.

Rightmove, founded in 2000, has maintained its dominant position in the UK property market, with a market share exceeding 70% in online property advertising. The platform receives over 140 million visits per month and has expanded its services to include data analytics and virtual property tours.

Despite REA's expressed frustration at a perceived lack of engagement, Rightmove countered by stating it "has taken every phone call that REA has made since its interest was first made public." The company added that their teams have had numerous interactions, including strategic discussions as recently as June 2024.

As a constituent of the FTSE 100 Index since 2019, Rightmove's success has led to the term "Rightmove effect" in the UK property market. The company's data is frequently cited in market reports, and it has expanded internationally while also engaging in charitable initiatives related to housing and homelessness.

With the deadline approaching, the property industry awaits REA's next move, as Rightmove stands firm in its position as the UK's leading property portal.