Rupert Murdoch's REA Group looks to acquire UK real estate site Rightmove for USD5.8B

(MENAFN) REA Group, a digital real estate company owned by billionaire Rupert Murdoch’s News Corp, is exploring a potential acquisition of the British property website Rightmove for an estimated USD5.8 billion. This move aims to create a powerful global entity in the digital real estate marketing sector. Although REA Group, listed on the Australian stock exchange, disclosed on Monday that it is contemplating a cash-and-shares deal to acquire Rightmove, it clarified that it has not yet initiated any formal contact or negotiations with the British company. The news of this potential acquisition caused Rightmove’s shares to surge by 23 percent, while REA Group’s shares dipped by 6 percent during trading, reflecting the market's mixed reactions to the possibility of such a substantial transaction.

If the deal goes through, it would significantly expand REA Group's international footprint, bolstering its presence beyond its stronghold in Australia where it is already a leader in digital real estate marketing. The company has previously expanded into other markets, such as India, and acquiring Rightmove could further cement its status as a global player. Rightmove itself has seen consistent revenue growth over recent years, and with forecasts suggesting a resurgence in the UK property market driven by declining interest rates, this acquisition could strategically position REA Group to capitalize on a favorable market environment. As per UK regulations, REA must formally declare its intent regarding the potential takeover offer by September 30.

In a statement released today, REA Group emphasized that a merger with Rightmove would present substantial opportunities for both companies, enhancing the value of their shares and delivering considerable returns to shareholders. The proposed acquisition underscores REA's ambition to scale its operations globally and leverage the synergies between the two companies to solidify its leadership in the competitive digital real estate market. The move aligns with the company's broader strategy of growth through international expansion and acquisition, reflecting its confidence in the long-term prospects of the digital property marketplace. 

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