Australian digital advertising firm and operator of property websites, REA Group, has confirmed it is considering making a cash and share offer for Rightmove.
Murdoch-family owned News Corp is the parent company of REA Group.
REA Group said it had not approached Rightmove about a possible deal, however, but said it identified “clear similarities” between REA and Rightmove with both holding “leading market positions in the core residential business”.
It also said the two firms have “highly aligned cultural values”.
REA said it saw a “transformational opportunity” to apply its capabilities and expertise to enhance consumer value and create a global digital property company with top positions in Australia and the UK.
A statement on the consideration said: “The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns.
“REA therefore considers that a combination of the two businesses would provide a significant opportunity to unlock shareholder value.”
REA said it had a long history of growth and track record of building businesses to create platforms which have “transformed the way people experience property”.
By acquiring Rightmove, the firm said it would “enhance the UK property experience for buyers, sellers and renters”.
The firm said there was no certainty an offer for Rightmove would be made but noted it had until 30 September to announce its firm intention to make an offer for Rightmove.
REA Group operates residential and commercial property websites in Australia, as well as a flat share website and a property research website.
It also owns Australian mortgage broking franchise Mortgage Choice Pty, and property data provider PropTrack Pty.
In its full-year results released this month, REA Group saw its net profit after tax fall 15% annually to $303m (£154m).
For the year ending 2023, Rightmove reported an operating profit of £258m, up from £241.3m the year before.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
