UK Property Website Rightmove Rejects GBP 5.6 Billion Offer From Murdoch-backed REA Group

London, United Kingdom:

In a strategic move, UK-based property listing giant Rightmove turned down a significant £5.6 billion takeover bid from Australia's REA Group, a company majority-owned by Rupert Murdoch's News Corporation. The offer was deemed "wholly opportunistic" by Rightmove's board, which asserted that REA had severely undervalued the UK-based company's long-term potential.

Takeover Rejection and Future Prospects

Rightmove's board maintained that the proposed acquisition did not align with the company’s growth trajectory and refused to be swayed by what they saw as an undervalued bid. They emphasized that Rightmove’s future remains robust, with prospects that exceed the valuation proposed by REA.

REA’s Strategic Moves Following Rejection

REA Group, in response to the rejection, revealed its intention to apply for a secondary listing of its ordinary shares on the London Stock Exchange. The initial offer from REA had valued Rightmove at over 25% of its share price as of 30th August, proposing that shareholders in Rightmove would own around 18.6% of the newly merged entity.

REA's long-term vision includes creating a real estate company with strong profit margins and substantial cash generation, aiming to hold the top spot in both the UK and Australian property markets. REA argued that acquiring Rightmove would bolster the UK's property market ecosystem, benefiting buyers, sellers, and renters alike.

Key Deadlines and Next Steps

REA Group has been given until 5:00 pm on 30th September to either submit a revised bid or accept Rightmove's rejection. The company's response to this rejection will shape its future efforts in gaining a foothold in the UK market.

Murdoch’s Business Empire: Recent Developments

The rejection of the bid marks another setback for Rupert Murdoch's empire after the failure of Talk TV earlier this year. Simultaneously, hedge fund Starboard Value has filed a shareholder resolution aimed at reducing Murdoch's control over News Corp. Starboard's proposal seeks to dismantle the structure that currently gives Murdoch 40% of News Corp's voting power despite his owning only about 14% of its equity.

Murdoch's role in the media world has shifted since his decision to step down from Fox and News Corp in 2023, handing the reins to his son Lachlan. In recent developments, News Corp signed a multi-year deal with AI firm OpenAI, positioning itself to provide content from publications like the Wall Street Journal, New York Post, and The Times to AI bots such as ChatGPT.

REA Group’s Global Presence and History

REA Group Ltd, founded in 1995 and headquartered in Melbourne, Australia, operates as a global online real estate advertising company. It is publicly listed on the Australian Stock Exchange (ASX: REA) and has expanded its presence with offices in Hong Kong and India. Murdoch's News Corp holds a 61% stake in REA, a relationship that began in 2001 when Murdoch first acquired shares in the company.

About Rupert Murdoch

Rupert Murdoch, an Australian-born American business magnate, controls a global media empire through his company, News Corp. This vast portfolio includes prominent publications like The Sun, The Times, The Wall Street Journal, and The New York Post, as well as broadcasting channels such as Fox News and Sky News Australia. With a net worth estimated at $20 billion, Murdoch remains one of the most influential figures in media, despite stepping back from some of his leadership roles in recent years.