Rightmove says it is confident it can deliver even greater returns for investors, with agents potentially facing higher listing fees as a consequence, after the UK property portal rejected REA Group’s latest takeover offer of £6.2bn.
The REA Group has now opted against making a formal bid for Rightmove after being rebuffed for a fourth time by the London-listed firm.
REA’s decision to end its pursuit, which it blamed on “limited engagement” with the board, led to shares in Rightmove falling by almost 8% on the London Stock Exchange yesterday.
The board of Rightmove concluded that REA’s proposals were “unattractive and materially undervalued” the UK property portal, and as such could not be recommended to shareholders.
The board added that it is confident in Rightmove’s prospects as the UK’s number one property platform, stating:
– Rightmove’s business model has proven itself able to deliver strong outcomes in all operating environments
– A clear strategy in place to deliver long term and profitable growth
– Well positioned to drive innovation and digitisation through the entire property transaction chain, powered by unrivalled market data and insights
– Together with the Core business, Strategic Growth Areas will deliver a higher-growth, more diversified business, and an even stronger platform
– The board is confident that Rightmove’s experienced and high-quality management team will continue to successfully drive the Group to create significant value for shareholders
Andrew Fisher, chair, commented: “The board of Rightmove is grateful to all of its shareholders who have engaged and shared views through this process. Rightmove is an amazing business with a very strong team and a clear strategy. We are confident that we will deliver significant future value for shareholders.”
The key words here are shareholders and investors. No mention of the paying customer, who continues to be exploited with higher fees, lack of innovation and a tone of arrogance.
However, what are the options? If its the other two prime portals, thats fine, but no matter the levels of technology and innovation, the key question remains of “how are they going to raise their own profiles to the consumer?'” Its all well and good telling agents how good they are, they need to be telling the consumer!
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Agents don’t need a slow burn OTM or a comfy second place Zoopla, they need a genuine alternative to RM …. RM has zero loyalty to its customers, other than the very largest of agents.
Which other supplier takes this kind of attitude or approach to our businesses?
Which other supplier do we have that continues to milk its smaller clients for the advantage of its largest clients?
15% to 20% fee rises per annum will now be the norm for RM if the last few years is anything to go by; how long before you can no longer afford it?
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Costar and OTM seem to have gone very quiet following their bold claims earlier in the year.
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