News Corp-owned REA eyes £4.4bn swoop for Rightmove

Australian property giant REA Group, backed by Rupert Murdoch’s News Corp, is considering a £4.4bn takeover bid for UK competitor Rightmove .

In a statement to the Australian stock exchange, property search firm REA said it was considering a possible cash and share offer for the entire issued share capital of Rightmove but it was yet to enter any talks with the company.

A tie-up between the two could significantly reshape the online property market across two continents and create a global leader in real estate. If completed, it would mark the largest outbound transactions from Australia this year.

“The REA Board believes that there are clear similarities between REA and Rightmove in terms of their leading market positions in the core residential business, continued expansion and innovation of offerings across adjacent segments, leading audience share and strong brand awareness, as well as highly aligned cultural values,” the company said.

“REA sees a transformational opportunity to apply its globally leading capabilities and expertise to enhance customer and consumer value across the combined portfolio and to create a global and diversified digital property company, with number 1 positions in Australia and the UK.”

Rightmove is yet to respond.

Shares in REA, one of Australia’s largest listed companies, have jumped 25 per cent in the last year.

It now has until the end of September to make a formal offer, with equity raising likely needed to fund the ambitious acquisition.

As of Friday’s market close, Rightmove , the UK’s largest property portal, was valued at £4.36bn ($5.73bn).

The company generates revenue by charging real estate agents to list properties on its platform.