REA Group plans bid for Rightmove valued at £4.36 billion

Australia’s REA Group is considering a takeover bid for Rightmove, a property portal valued at approximately £4.36 billion on the London Stock Exchange. The announcement was made on a Monday, highlighting the potential for a significant merger between the two companies, which share similar cultural values. Following the news, Rightmove's shares surged by 25%, increasing its market value by over £1 billion, reaching more than £5.4 billion. The REA Group, which is primarily owned by Rupert Murdoch’s News Corp, expressed its vision of creating a global digital property company with leading positions in both Australia and the UK. The company believes that its expertise could enhance customer and consumer value across the combined portfolio. However, REA Group cautioned that there is no guarantee an offer will be made or what the terms might be. Rightmove has shown resilience in its financial performance, with a 10% revenue increase to £364.3 million last year and a 7.7% rise in pre-tax profit to £259.8 million. Analysts suggest that the interest from REA Group is not unexpected, especially given the subdued share price of Rightmove amid a declining UK property market. The REA Group has until September 30 to formalize its offer or withdraw its interest. This potential acquisition could reshape the landscape of the digital property market, creating a more diversified entity with significant influence in both regions.