Shares in Rightmove rose sharply yesterday on confirmation of a bid interest from an Australian rival majority-owned by Rupert Murdoch’s News Corp.
REA Group announced on Monday morning that it was considering a takeover proposal to create a globally-focused real estate company.
Any bid would likely comprise a cash and shares offer. No approach has been made to date, REA said (also confirmed by Rightmove).
REA is 61%-owned by News Corp, which has existing UK interests including The Sun and The Times newspaper brands under the company’s News UK arm.
Shares in Rightmove, valued at almost £4.4bn as of last Friday’s close, jumped 27.4% to 708p when the FTSE 100 closed for business on Monday, taking them to their highest level in two-and-a-half years.
REA stock, however, fell 8%.
Under the UK’s takeover code, it has to update the market if it has a firm intention to make a bid by 30 September.
Rightmove issued the following statement late yesterday afternoon:
“Rightmove plc (“Rightmove” or the “Company”) notes the announcement this morning from REA Group Ltd (“REA”). Rightmove has not received any approach from REA about a possible offer for the Company. Rightmove shareholders should take no action.
“Any offer for Rightmove is governed by the City Code on Takeovers and Mergers (the “Code”). Under Rule 2.6(a) of the Code, REA must, by not later than 5.00 p.m. on 30 September 2024, either announce a firm intention to make an offer for Rightmove in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
“A further announcement will be provided as and when appropriate.”
Rightmove added in a separate statement, in accordance with Rule 2.9 of the City Code on Takeovers and Mergers:
“Rightmove confirms that there are 788,750,604 ordinary shares of 0.1 pence each in issue (excluding 11,401,687 shares held in treasury). The International Securities Identification Number (ISIN) for Rightmove’s shares is GB00BGDT3G23.”
EYE NEWSFLASH: Rightmove targeted for £4.4bn takeover offer by News Corp’s REA
By my reckoning, there are 12 potential buyers for Rightmove, any of which could kick off a feeding frenzy if they move forward.
REA’s approach can be best likened to a door knock—just checking to see if the owners might be interested in selling. If they are, an auction or tender process would likely be the way to go. However, my guess is that this is the investors’ “forever home,” and they’ve no plans to move.
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REA Group’s interest in Rightmove is more than just another business move; it’s a signal of deeper shifts within our industry. Rightmove, once the undisputed leader in the UK property portal market, is now showing its age—much like an old house with strong bones but in need of modernisation. The platform’s 70% profit margin, long seen as its crown jewel, is now facing significant pressure.
If REA does decide to buy Rightmove, they’ll be looking to maintain that profit margin, as it’s a major part of the platform’s value. However, the reality is that there are at least 11 other serious buyers who would likely be satisfied with a 50% margin. Among them, there will almost certainly be one willing to operate at 30% or even 25%. This is where the real competition will emerge, and it’s going to challenge the established players in ways they haven’t faced before.
When I was building Rummage4, the industry watched skeptically—until the moment I sold it to CoreLogic. That sale wasn’t just a business transaction; it was proof of a vision for the future, one that looks beyond traditional portals. It’s a vision that’s now becoming more relevant than ever. As REA and others consider their next moves, it’s clear that only one forward-thinking buyer needs to recognize the potential in what’s being built now—a potential that could reshape the industry landscape.
We’re on the brink of significant change in the property portal market. It’s not just about maintaining what’s been; it’s about who’s ready to build what’s next. The players who understand this and are prepared to innovate will be the ones who lead the industry into the future.
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Word limit required. Blogging on someone else’s platform sux
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Sorry for any upset or distress. A 300-word post isn’t excessive or a blog for a professional platform. Property Industry Eye isn’t Twitter or TikTok—something a 12-year-old can read in a minute isn’t unreasonable. It’s the sort of content I’d expect industry professionals to cope with.
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Also time rightmove stopped listing old stock as new. People are now actively swapping agents to get ‘ new ‘ status.
Property should be date stamped so buyers aren’t misled . More importantly agents can stop misleading sellers about getting a ‘new status ‘ as well.
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The whole business of selling and renting property has seen a dramatic change in just over a year or so and with takeovers and mergers in abundance the sector will consolidate so much that only the few big names will exist say four or five with many of the minnows being swallowed up . Not many left for the private equity boys to get stuck into but with BC Partners now having a chunk of Foxtons shares expect them to be next to go
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