Rightmove gains from Murdoch"s takeover interest in 2023

Rightmove, the UK's largest online property website, is facing a potential takeover bid from Australia's REA Group, which is majority-owned by Rupert Murdoch's News Corp. This announcement was made on a Monday morning, leading to a significant surge in Rightmove's shares, which rose by as much as 25%, increasing its market valuation by over £1 billion. Prior to this news, Rightmove had a market value of £4.36 billion, which escalated to more than £5.4 billion following the announcement. REA Group has expressed interest in leveraging its global capabilities to enhance customer value and create a diversified digital property company with leading positions in both Australia and the UK. The company has not disclosed the specific amount it is willing to offer for Rightmove, but it is anticipated to be in the billions. The deadline for REA Group to make a formal offer or withdraw its interest is set for September 30. Despite challenges in the UK property market, which have led to a decrease in users on Rightmove's platform, the company reported a revenue increase of about 10% to £364.3 million last year, with pre-tax profits climbing 7.7% to £259.8 million. Rightmove has managed to maintain its share price, attributed to an increase in average revenue per advertiser by nearly 10%. Analysts have noted that the bid from REA Group is not unexpected, particularly given the subdued state of the UK property market. The potential takeover could represent a significant shift in the competitive landscape of online property services, with implications for both companies involved.