AUSTRALIA’S digital property group Rea has certainly been dogged in its pursuit of Rightmove, the high-profile UK online property portal. But Rightmove has been equally determined to stand firm, rejecting four offers from the company majority-backed by Rupert Murdoch’s News Corp.
Rea’s frustration with the board of Rightmove has been evident, with the Australian property giant reiterating its "disappointment and surprise at the repeated rejections of its prior proposals by the board of directors of Rightmove” the lack of “substantive engagement”.
Its chief executive Owen Wilson stated: “We continue to see the potential for us to strengthen Rightmove and accelerate its growth. This is a compelling opportunity to create a true global technology leader on the London market via a secondary listing, operating in two of the most attractive markets in the world.”
'Rightmove is an exceptional company with a clear strategy'
At Rightmove, chair Andrew Fisher was blunt, describing the last few weeks as “very disruptive, as well as unsettling for our colleagues”. He said: “Our world-class team is executing against our strategic plan and continuing to drive innovation and accelerate growth to deliver compelling shareholder value.”
However, he added: “We respect Rea and the success they have achieved in their domestic market. However, we remain confident in the standalone future of Rightmove. Rightmove has been the leading operator in the UK for over 20 years and it has differentiated market presence, branding and technology, and very significant opportunities for future growth.”
With no further bid from Melbourne-based Rea forthcoming ahead of yesterday’s 5pm “put up or shut up” deadline, it remains to be seen what the group, which operates residential and commercial property websites realestate.com.au and realcommercial.com.au down under, does next.
The Murdochs have a reputation for getting what they want, and this fourth offer shows how serious it is. However, Russ Mould, investment director at AJ Bell, last week stated: “Rea really needs to show its best and final offer. If it’s still not enough to win over Rightmove’s board and shareholders, the bidder needs to walk away and think about different ways to expand its empire.”
If there was to be a takeover, it would make Rightmove the latest of London’s blue-chip companies to disappear from the FTSE 100 index.
Sites like Rightmove and its rivals OnTheMarket and Zoopla estate agents to list properties for sale, profiting from the advertising fees paid, and have turned the traditional high street estate agency model on its head.
Rightmove knocks back third takeover offer from down under
It was over 20 years ago that Rupert Murdoch’s son Lachlan bought Rea and it has become increasingly important to the family empire after it disposed of some of New Corp’s major media assets last year.
Mr Murdoch senior also retired in 2023, passing the mantle of chairman to Lachlan. However, family feuding that wouldn’t look out of place in Succession, the award-winning TV series about media mogul Logan Roy is ongoing, with Lachlan’s siblings challenging the patriarch.
Watch this space for the next Rightmove-Rea instalment.
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