Rupert Murdoch’s REA Group is interested in bidding for Rightmove, the UK’s leading property portal.
In a move that would be a real kick in the teeth for London’s equity market and the British property landscape, Australian real estate media giant REA Group has announced it is considering a takeover bid for Rightmove.
REA Group, owned by Rupert Murdoch, has confirmed it is weighing up a possible cash and share offer for the entire issued and to-be-issued share capital of Rightmove. However, it notes that no formal discussions have taken place between the two companies, and REA Group has not yet approached Rightmove regarding any potential offer.
Nonetheless, Rightmove shares were over 23% higher in very early trade on Monday.
If Rightmove were to leave London’s stock market, it would follow in the footsteps of peer OnTheMarket, who accepted a £100m bid from US property information company CoStar in 2023.
Used by millions, Rightmove has built a deep moat and is one of the UK’s most widely visited websites and the leading property portal. Searching on Rightmove is synonymous with entering and moving up the UK property ladder.
REA Group views this potential merger as a transformational opportunity to create a global and diversified digital property company with market-leading positions in both Australia and the UK.
The potential takeover bid taps into the British public’s long-standing obsession with property. For decades, homeownership has been a cornerstone of British culture, with property often seen as both a home and an investment.
If London’s equity markets cannot support companies so deeply entrenched in the UK’s obsession with property by providing the right environment to fend off overseas bids, we are truly in dire straits.
REA Group believes that the enlarged group would represent an attractive investment opportunity for shareholders of both companies.
We will have to wait and see if Rightmove’s board and shareholders agree.
As per UK takeover rules, REA Group must announce a firm intention to make an offer or declare it does not intend to make an offer by 5.00 p.m. on 30 September 2024. This deadline may only be extended with the consent of the Takeover Panel.