Rightmove has turned down a £5.6bn takeover bid from Australian property site REA Group, which is backed by Rupert Murdoch’s News Corporation. Rightmove’s board dismissed the offer as “wholly opportunistic,” stating it “fundamentally undervalued Rightmove and its future prospects.”
REA Group, majority-owned by News Corp, had proposed a deal that would have given Rightmove shareholders about 18.6% of the newly merged business. The offer represented a premium of more than 25% over Rightmove’s share price as of August 30. REA described its vision as creating a leading property platform with “strong margins and significant cash generation” across both the UK and Australia, promising to enhance the experience for buyers, sellers, and renters in the UK market.
However, Rightmove’s board firmly rejected the bid, which REA has until September 30 to revise or walk away from.
This setback comes amid broader challenges for Murdoch’s business empire, following the failure of Talk TV earlier this year. Meanwhile, hedge fund Starboard Value has pushed for changes at News Corp, seeking to reduce Murdoch’s influence by proposing a shareholder resolution to dismantle the structure that allows him to control 40% of the company’s voting stock, despite owning just 14% of the equity.
Murdoch, whose net worth is estimated at over $20bn (£15bn), stepped down as chairman of Fox and News Corp in 2023, handing the reins to his son Lachlan. News Corp has also recently entered a multi-year deal with artificial intelligence firm OpenAI, ensuring that content from its publications, including the Wall Street Journal, New York Post, and the Times, will feed into AI systems like ChatGPT.
News Corp first acquired a stake in REA in 2001 and currently holds a 61% share in the company. REA Group has also announced plans to pursue a secondary listing of its shares in London following Rightmove’s rejection.